Correlation Between Growth Fund and Compagnie Financire
Can any of the company-specific risk be diversified away by investing in both Growth Fund and Compagnie Financire 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 Compagnie Financire 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 Compagnie Financire Richemont, you can compare the effects of market volatilities on Growth Fund and Compagnie Financire 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 Compagnie Financire. Check out your portfolio center. Please also check ongoing floating volatility patterns of Growth Fund and Compagnie Financire.
Diversification Opportunities for Growth Fund and Compagnie Financire
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Growth and Compagnie is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Growth Fund Of and Compagnie Financire Richemont in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compagnie Financire 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 Compagnie Financire. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Compagnie Financire has no effect on the direction of Growth Fund i.e., Growth Fund and Compagnie Financire go up and down completely randomly.
Pair Corralation between Growth Fund and Compagnie Financire
Assuming the 90 days horizon Growth Fund is expected to generate 15.62 times less return on investment than Compagnie Financire. But when comparing it to its historical volatility, Growth Fund Of is 4.33 times less risky than Compagnie Financire. It trades about 0.08 of its potential returns per unit of risk. Compagnie Financire Richemont is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 13,610 in Compagnie Financire Richemont on October 23, 2024 and sell it today you would earn a total of 2,795 from holding Compagnie Financire Richemont or generate 20.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 88.89% |
| Values | Daily Returns |
Growth Fund Of vs. Compagnie Financire Richemont
Performance |
| Timeline |
| Growth Fund |
| Compagnie Financire |
Growth Fund and Compagnie Financire Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Growth Fund and Compagnie Financire
The main advantage of trading using opposite Growth Fund and Compagnie Financire positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Growth Fund position performs unexpectedly, Compagnie Financire 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 Compagnie Financire will offset losses from the drop in Compagnie Financire'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 |
| Compagnie Financire vs. Swatch Group AG | Compagnie Financire vs. Givaudan SA | Compagnie Financire vs. Zurich Insurance Group | Compagnie Financire vs. Novartis AG |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |