Correlation Between Ambrus Core and Anchor Risk

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

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

Diversification Opportunities for Ambrus Core and Anchor Risk

0.0

Correlation Coefficient

Ambrus Core  Anchor Risk

Pay attention - limited upside

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

Pair Corralation between Ambrus Core and Anchor Risk

If you would invest (100.00) in Anchor Risk Managed on October 7, 2024 and sell it today you would earn a total of  100.00  from holding Anchor Risk Managed or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Ambrus Core Bond  vs.  Anchor Risk Managed

Ambrus Core Bond

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ambrus Core Bond has generated negative risk-adjusted returns adding no value to fund investors. 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.

Anchor Risk Managed

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Ambrus Core and Anchor Risk

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

The idea behind Ambrus Core Bond and Anchor Risk Managed 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 Global Correlations module to find global opportunities by holding instruments from different markets.