Correlation Between Growth Fund and Aperture Discover
Can any of the company-specific risk be diversified away by investing in both Growth Fund and Aperture Discover 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 Growth Fund and Aperture Discover into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Growth Fund Of and Aperture Discover Equity, you can compare the effects of market volatilities on Growth Fund and Aperture Discover 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 Aperture Discover. Check out your portfolio center. Please also check ongoing floating volatility patterns of Growth Fund and Aperture Discover.
Diversification Opportunities for Growth Fund and Aperture Discover
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Growth and Aperture is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Growth Fund Of and Aperture Discover Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aperture Discover Equity 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 Aperture Discover. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aperture Discover Equity has no effect on the direction of Growth Fund i.e., Growth Fund and Aperture Discover go up and down completely randomly.
Pair Corralation between Growth Fund and Aperture Discover
If you would invest 6,152 in Growth Fund Of on November 3, 2024 and sell it today you would earn a total of 1,679 from holding Growth Fund Of or generate 27.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 0.4% |
| Values | Daily Returns |
Growth Fund Of vs. Aperture Discover Equity
Performance |
| Timeline |
| Growth Fund |
| Aperture Discover Equity |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Growth Fund and Aperture Discover Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Growth Fund and Aperture Discover
The main advantage of trading using opposite Growth Fund and Aperture Discover positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Growth Fund position performs unexpectedly, Aperture Discover 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 Aperture Discover will offset losses from the drop in Aperture Discover'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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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