Correlation Between Aamhimco Short and Aambahl Gaynor

Can any of the company-specific risk be diversified away by investing in both Aamhimco Short and Aambahl Gaynor at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Aamhimco Short and Aambahl Gaynor into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Aamhimco Short Duration and Aambahl Gaynor Income, you can compare the effects of market volatilities on Aamhimco Short and Aambahl Gaynor and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Aamhimco Short with a short position of Aambahl Gaynor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aamhimco Short and Aambahl Gaynor.

Diversification Opportunities for Aamhimco Short and Aambahl Gaynor

-0.28

Correlation Coefficient

Aamhimco Short  Aambahl Gaynor

Very good diversification

The 3 months correlation between Aamhimco and Aambahl is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Aamhimco Short Duration and Aambahl Gaynor Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aambahl Gaynor Income and Aamhimco Short is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Aamhimco Short Duration are associated (or correlated) with Aambahl Gaynor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aambahl Gaynor Income has no effect on the direction of Aamhimco Short i.e., Aamhimco Short and Aambahl Gaynor go up and down completely randomly.

Pair Corralation between Aamhimco Short and Aambahl Gaynor

Assuming the 90 days horizon Aamhimco Short Duration is expected to under-perform the Aambahl Gaynor. But the mutual fund apears to be less risky and, when comparing its historical volatility, Aamhimco Short Duration is 6.37 times less risky than Aambahl Gaynor. The mutual fund trades about -0.05 of its potential returns per unit of risk. The Aambahl Gaynor Income is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  2,644  in Aambahl Gaynor Income on September 16, 2024 and sell it today you would earn a total of  34.00  from holding Aambahl Gaynor Income or generate 1.29% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Aamhimco Short Duration  vs.  Aambahl Gaynor Income

Aamhimco Short Duration

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Aamhimco Short Duration has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong fundamental indicators, Aamhimco Short is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Aambahl Gaynor Income

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Aambahl Gaynor Income are ranked lower than 2 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Aambahl Gaynor is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Aamhimco Short and Aambahl Gaynor

The main advantage of trading using opposite Aamhimco Short and Aambahl Gaynor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aamhimco Short position performs unexpectedly, Aambahl Gaynor can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Aambahl Gaynor will offset losses from the drop in Aambahl Gaynor's long position.

The idea behind Aamhimco Short Duration and Aambahl Gaynor Income pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.