Correlation Between Cmg Ultra and Ambrus Core

Can any of the company-specific risk be diversified away by investing in both Cmg Ultra and Ambrus Core 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 Cmg Ultra and Ambrus Core into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Cmg Ultra Short and Ambrus Core Bond, you can compare the effects of market volatilities on Cmg Ultra and Ambrus Core 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 Cmg Ultra with a short position of Ambrus Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cmg Ultra and Ambrus Core.

Diversification Opportunities for Cmg Ultra and Ambrus Core

0.85

Correlation Coefficient

Cmg Ultra  Ambrus Core

Very poor diversification

The 3 months correlation between Cmg and Ambrus is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Cmg Ultra Short and Ambrus Core Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ambrus Core Bond and Cmg Ultra 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 Cmg Ultra Short are associated (or correlated) with Ambrus Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ambrus Core Bond has no effect on the direction of Cmg Ultra i.e., Cmg Ultra and Ambrus Core go up and down completely randomly.

Pair Corralation between Cmg Ultra and Ambrus Core

Assuming the 90 days horizon Cmg Ultra is expected to generate 1.59 times less return on investment than Ambrus Core. But when comparing it to its historical volatility, Cmg Ultra Short is 2.13 times less risky than Ambrus Core. It trades about 0.23 of its potential returns per unit of risk. Ambrus Core Bond is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  978.00  in Ambrus Core Bond on December 20, 2024 and sell it today you would earn a total of  19.00  from holding Ambrus Core Bond or generate 1.94% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	98.33%
Values	Daily Returns

Cmg Ultra Short  vs.  Ambrus Core Bond

Cmg Ultra Short

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Cmg Ultra Short are ranked lower than 18 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Cmg Ultra is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Ambrus Core Bond

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Ambrus Core Bond are ranked lower than 13 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental drivers, Ambrus Core is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Cmg Ultra and Ambrus Core

The main advantage of trading using opposite Cmg Ultra and Ambrus Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cmg Ultra position performs unexpectedly, Ambrus Core 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 Ambrus Core will offset losses from the drop in Ambrus Core's long position.

The idea behind Cmg Ultra Short and Ambrus Core Bond 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.

Check out your portfolio center.

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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..