Correlation Between Aam Select and Steward Covered
Can any of the company-specific risk be diversified away by investing in both Aam Select and Steward Covered 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 Aam Select and Steward Covered into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aam Select Income and Steward Ered Call, you can compare the effects of market volatilities on Aam Select and Steward Covered 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 Aam Select with a short position of Steward Covered. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aam Select and Steward Covered.
Diversification Opportunities for Aam Select and Steward Covered
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aam and Steward is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Aam Select Income and Steward Ered Call in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Steward Ered Call and Aam Select 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 Aam Select Income are associated (or correlated) with Steward Covered. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Steward Ered Call has no effect on the direction of Aam Select i.e., Aam Select and Steward Covered go up and down completely randomly.
Pair Corralation between Aam Select and Steward Covered
Assuming the 90 days horizon Aam Select Income is expected to generate 0.33 times more return on investment than Steward Covered. However, Aam Select Income is 3.04 times less risky than Steward Covered. It trades about 0.01 of its potential returns per unit of risk. Steward Ered Call is currently generating about -0.13 per unit of risk. If you would invest 923.00 in Aam Select Income on December 3, 2024 and sell it today you would earn a total of 2.00 from holding Aam Select Income or generate 0.22% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Aam Select Income vs. Steward Ered Call
Performance |
Timeline |
Aam Select Income |
Steward Ered Call |
Aam Select and Steward Covered Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Aam Select and Steward Covered
The main advantage of trading using opposite Aam Select and Steward Covered positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aam Select position performs unexpectedly, Steward Covered 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 Steward Covered will offset losses from the drop in Steward Covered's long position.Aam Select vs. Goldman Sachs Financial | Aam Select vs. Rmb Mendon Financial | Aam Select vs. Blackrock Financial Institutions | Aam Select vs. John Hancock Financial |
Steward Covered vs. T Rowe Price | Steward Covered vs. Artisan High Income | Steward Covered vs. Mainstay High Yield | Steward Covered vs. Pace High Yield |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |