Correlation Between Vident Core and Anfield Dynamic

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

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

Diversification Opportunities for Vident Core and Anfield Dynamic

0.94

Correlation Coefficient

Vident Core  Anfield Dynamic

Almost no diversification

The 3 months correlation between Vident and Anfield is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Vident Core Bond and Anfield Dynamic Fixed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anfield Dynamic Fixed and Vident 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 Vident Core Bond are associated (or correlated) with Anfield Dynamic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anfield Dynamic Fixed has no effect on the direction of Vident Core i.e., Vident Core and Anfield Dynamic go up and down completely randomly.

Pair Corralation between Vident Core and Anfield Dynamic

Given the investment horizon of 90 days Vident Core Bond is expected to generate 0.86 times more return on investment than Anfield Dynamic. However, Vident Core Bond is 1.17 times less risky than Anfield Dynamic. It trades about 0.09 of its potential returns per unit of risk. Anfield Dynamic Fixed is currently generating about 0.05 per unit of risk. If you would invest  4,259  in Vident Core Bond on December 28, 2024 and sell it today you would earn a total of  75.20  from holding Vident Core Bond or generate 1.77% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	98.36%
Values	Daily Returns

Vident Core Bond  vs.  Anfield Dynamic Fixed

Vident Core Bond

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Vident Core Bond are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, Vident Core is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Anfield Dynamic Fixed

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Anfield Dynamic Fixed are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong technical and fundamental indicators, Anfield Dynamic is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Vident Core and Anfield Dynamic

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

The idea behind Vident Core Bond and Anfield Dynamic Fixed 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.