Correlation Between Ambrus Core and Bitcoin Strategy

Can any of the company-specific risk be diversified away by investing in both Ambrus Core and Bitcoin Strategy 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 Bitcoin Strategy 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 Bitcoin Strategy Profund, you can compare the effects of market volatilities on Ambrus Core and Bitcoin Strategy 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 Bitcoin Strategy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ambrus Core and Bitcoin Strategy.

Diversification Opportunities for Ambrus Core and Bitcoin Strategy

-0.55

Correlation Coefficient

Ambrus Core  Bitcoin Strategy

Excellent diversification

The 3 months correlation between Ambrus and Bitcoin is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Ambrus Core Bond and Bitcoin Strategy Profund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitcoin Strategy Profund 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 Bitcoin Strategy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitcoin Strategy Profund has no effect on the direction of Ambrus Core i.e., Ambrus Core and Bitcoin Strategy go up and down completely randomly.

Pair Corralation between Ambrus Core and Bitcoin Strategy

Assuming the 90 days horizon Ambrus Core is expected to generate 16.49 times less return on investment than Bitcoin Strategy. But when comparing it to its historical volatility, Ambrus Core Bond is 22.9 times less risky than Bitcoin Strategy. It trades about 0.2 of its potential returns per unit of risk. Bitcoin Strategy Profund is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  3,066  in Bitcoin Strategy Profund on September 14, 2024 and sell it today you would earn a total of  285.00  from holding Bitcoin Strategy Profund or generate 9.3% return on investment over 90 days.

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

Ambrus Core Bond  vs.  Bitcoin Strategy Profund

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.

Bitcoin Strategy Profund

Risk-Adjusted Performance

20 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Bitcoin Strategy Profund are ranked lower than 20 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Bitcoin Strategy showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Ambrus Core and Bitcoin Strategy

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

The idea behind Ambrus Core Bond and Bitcoin Strategy Profund 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.