Correlation Between Growth Fund and Beijing Lanxum
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By analyzing existing cross correlation between Growth Fund Of and Beijing Lanxum Tech, you can compare the effects of market volatilities on Growth Fund and Beijing Lanxum 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 Growth Fund with a short position of Beijing Lanxum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Growth Fund and Beijing Lanxum.
Diversification Opportunities for Growth Fund and Beijing Lanxum
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Growth and Beijing is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Growth Fund Of and Beijing Lanxum Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Lanxum Tech and Growth 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 Growth Fund Of are associated (or correlated) with Beijing Lanxum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Lanxum Tech has no effect on the direction of Growth Fund i.e., Growth Fund and Beijing Lanxum go up and down completely randomly.
Pair Corralation between Growth Fund and Beijing Lanxum
Assuming the 90 days horizon Growth Fund is expected to generate 7.91 times less return on investment than Beijing Lanxum. But when comparing it to its historical volatility, Growth Fund Of is 5.88 times less risky than Beijing Lanxum. It trades about 0.1 of its potential returns per unit of risk. Beijing Lanxum Tech is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 173.00 in Beijing Lanxum Tech on November 3, 2024 and sell it today you would earn a total of 605.00 from holding Beijing Lanxum Tech or generate 349.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Growth Fund Of vs. Beijing Lanxum Tech
Performance |
| Timeline |
| Growth Fund |
| Beijing Lanxum Tech |
Growth Fund and Beijing Lanxum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Growth Fund and Beijing Lanxum
The main advantage of trading using opposite Growth Fund and Beijing Lanxum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Growth Fund position performs unexpectedly, Beijing Lanxum 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 Beijing Lanxum will offset losses from the drop in Beijing Lanxum's long position.| Growth Fund vs. Capital World Growth | Growth Fund vs. Europacific Growth Fund | Growth Fund vs. New Perspective Fund | Growth Fund vs. Investment Of America |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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