Correlation Between Payden Absolute and Mutual Of

Can any of the company-specific risk be diversified away by investing in both Payden Absolute and Mutual Of 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 Payden Absolute and Mutual Of into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Payden Absolute Return and Mutual Of America, you can compare the effects of market volatilities on Payden Absolute and Mutual Of 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 Payden Absolute with a short position of Mutual Of. Check out your portfolio center. Please also check ongoing floating volatility patterns of Payden Absolute and Mutual Of.

Diversification Opportunities for Payden Absolute and Mutual Of

0.0

Correlation Coefficient

Payden Absolute  Mutual Of

Pay attention - limited upside

The 3 months correlation between Payden and Mutual is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Payden Absolute Return and Mutual Of America in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mutual Of America and Payden Absolute 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 Payden Absolute Return are associated (or correlated) with Mutual Of. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mutual Of America has no effect on the direction of Payden Absolute i.e., Payden Absolute and Mutual Of go up and down completely randomly.

Pair Corralation between Payden Absolute and Mutual Of

If you would invest  936.00  in Payden Absolute Return on December 20, 2024 and sell it today you would earn a total of  13.00  from holding Payden Absolute Return or generate 1.39% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.67%
Values	Daily Returns

Payden Absolute Return  vs.  Mutual Of America

Payden Absolute Return

Risk-Adjusted Performance

Solid

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

Mutual Of America

Risk-Adjusted Performance

Solid

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

Pair Trading with Payden Absolute and Mutual Of

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

The idea behind Payden Absolute Return and Mutual Of America 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.