Correlation Between ALLFUNDS GROUP and National Retail
Can any of the company-specific risk be diversified away by investing in both ALLFUNDS GROUP and National Retail 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 ALLFUNDS GROUP and National Retail into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ALLFUNDS GROUP EO 0025 and National Retail Properties, you can compare the effects of market volatilities on ALLFUNDS GROUP and National Retail 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 ALLFUNDS GROUP with a short position of National Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of ALLFUNDS GROUP and National Retail.
Diversification Opportunities for ALLFUNDS GROUP and National Retail
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ALLFUNDS and National is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding ALLFUNDS GROUP EO 0025 and National Retail Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Retail Prop and ALLFUNDS GROUP 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 ALLFUNDS GROUP EO 0025 are associated (or correlated) with National Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Retail Prop has no effect on the direction of ALLFUNDS GROUP i.e., ALLFUNDS GROUP and National Retail go up and down completely randomly.
Pair Corralation between ALLFUNDS GROUP and National Retail
Assuming the 90 days horizon ALLFUNDS GROUP EO 0025 is expected to generate 1.25 times more return on investment than National Retail. However, ALLFUNDS GROUP is 1.25 times more volatile than National Retail Properties. It trades about -0.06 of its potential returns per unit of risk. National Retail Properties is currently generating about -0.16 per unit of risk. If you would invest 507.00 in ALLFUNDS GROUP EO 0025 on October 26, 2024 and sell it today you would lose (10.00) from holding ALLFUNDS GROUP EO 0025 or give up 1.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ALLFUNDS GROUP EO 0025 vs. National Retail Properties
Performance |
| Timeline |
| ALLFUNDS GROUP EO |
| National Retail Prop |
ALLFUNDS GROUP and National Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ALLFUNDS GROUP and National Retail
The main advantage of trading using opposite ALLFUNDS GROUP and National Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ALLFUNDS GROUP position performs unexpectedly, National Retail 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 National Retail will offset losses from the drop in National Retail's long position.| ALLFUNDS GROUP vs. PennantPark Investment | ALLFUNDS GROUP vs. Materialise NV | ALLFUNDS GROUP vs. Vulcan Materials | ALLFUNDS GROUP vs. Martin Marietta Materials |
| National Retail vs. DATADOT TECHNOLOGY | National Retail vs. ALTAIR RES INC | National Retail vs. Delta Air Lines | National Retail vs. MICRONIC MYDATA |
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.
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