Correlation Between High-yield Fund and Northeast Investors
Can any of the company-specific risk be diversified away by investing in both High-yield Fund and Northeast Investors 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 High-yield Fund and Northeast Investors into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between High Yield Fund Investor and Northeast Investors Trust, you can compare the effects of market volatilities on High-yield Fund and Northeast Investors 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 High-yield Fund with a short position of Northeast Investors. Check out your portfolio center. Please also check ongoing floating volatility patterns of High-yield Fund and Northeast Investors.
Diversification Opportunities for High-yield Fund and Northeast Investors
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between High-yield and Northeast is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding High Yield Fund Investor and Northeast Investors Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northeast Investors Trust and High-yield Fund 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 High Yield Fund Investor are associated (or correlated) with Northeast Investors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Northeast Investors Trust has no effect on the direction of High-yield Fund i.e., High-yield Fund and Northeast Investors go up and down completely randomly.
Pair Corralation between High-yield Fund and Northeast Investors
Assuming the 90 days horizon High-yield Fund is expected to generate 1.84 times less return on investment than Northeast Investors. In addition to that, High-yield Fund is 1.07 times more volatile than Northeast Investors Trust. It trades about 0.13 of its total potential returns per unit of risk. Northeast Investors Trust is currently generating about 0.26 per unit of volatility. If you would invest 365.00 in Northeast Investors Trust on November 3, 2024 and sell it today you would earn a total of 4.00 from holding Northeast Investors Trust or generate 1.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
High Yield Fund Investor vs. Northeast Investors Trust
Performance |
| Timeline |
| High Yield Fund |
| Northeast Investors Trust |
High-yield Fund and Northeast Investors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with High-yield Fund and Northeast Investors
The main advantage of trading using opposite High-yield Fund and Northeast Investors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if High-yield Fund position performs unexpectedly, Northeast Investors 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 Northeast Investors will offset losses from the drop in Northeast Investors' long position.| High-yield Fund vs. High Yield Municipal Fund | High-yield Fund vs. Diversified Bond Fund | High-yield Fund vs. Ginnie Mae Fund | High-yield Fund vs. Utilities Fund Investor |
| Northeast Investors vs. Simt Multi Asset Inflation | Northeast Investors vs. Aqr Managed Futures | Northeast Investors vs. Ab Bond Inflation | Northeast Investors vs. Cref Inflation Linked Bond |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |