Correlation Between Western Union and AMBASSADORS INTL
Can any of the company-specific risk be diversified away by investing in both Western Union and AMBASSADORS INTL 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 Western Union and AMBASSADORS INTL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Western Union Co and AMBASSADORS INTL INC, you can compare the effects of market volatilities on Western Union and AMBASSADORS INTL 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 Western Union with a short position of AMBASSADORS INTL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Union and AMBASSADORS INTL.
Diversification Opportunities for Western Union and AMBASSADORS INTL
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Western and AMBASSADORS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Western Union Co and AMBASSADORS INTL INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMBASSADORS INTL INC and Western Union 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 Western Union Co are associated (or correlated) with AMBASSADORS INTL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMBASSADORS INTL INC has no effect on the direction of Western Union i.e., Western Union and AMBASSADORS INTL go up and down completely randomly.
Pair Corralation between Western Union and AMBASSADORS INTL
If you would invest 0.00 in AMBASSADORS INTL INC on March 11, 2024 and sell it today you would earn a total of 0.00 from holding AMBASSADORS INTL INC or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 4.76% |
Values | Daily Returns |
Western Union Co vs. AMBASSADORS INTL INC
Performance |
Timeline |
Western Union |
AMBASSADORS INTL INC |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Western Union and AMBASSADORS INTL Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Western Union and AMBASSADORS INTL
The main advantage of trading using opposite Western Union and AMBASSADORS INTL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Union position performs unexpectedly, AMBASSADORS INTL 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 AMBASSADORS INTL will offset losses from the drop in AMBASSADORS INTL's long position.Western Union vs. Navient Corp | Western Union vs. Green Dot | Western Union vs. Orix Corp Ads | Western Union vs. FirstCash |
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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 CEOs Directory module to screen CEOs from public companies around the world.
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