Correlation Between Growth Fund and Combigene
Can any of the company-specific risk be diversified away by investing in both Growth Fund and Combigene 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 Combigene 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 Combigene AB, you can compare the effects of market volatilities on Growth Fund and Combigene 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 Combigene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Growth Fund and Combigene.
Diversification Opportunities for Growth Fund and Combigene
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Growth and Combigene is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Growth Fund Of and Combigene AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Combigene AB 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 Combigene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Combigene AB has no effect on the direction of Growth Fund i.e., Growth Fund and Combigene go up and down completely randomly.
Pair Corralation between Growth Fund and Combigene
Assuming the 90 days horizon Growth Fund Of is expected to generate 0.2 times more return on investment than Combigene. However, Growth Fund Of is 5.1 times less risky than Combigene. It trades about 0.1 of its potential returns per unit of risk. Combigene AB is currently generating about 0.0 per unit of risk. If you would invest 6,186 in Growth Fund Of on November 4, 2024 and sell it today you would earn a total of 1,645 from holding Growth Fund Of or generate 26.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Growth Fund Of vs. Combigene AB
Performance |
| Timeline |
| Growth Fund |
| Combigene AB |
Growth Fund and Combigene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Growth Fund and Combigene
The main advantage of trading using opposite Growth Fund and Combigene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Growth Fund position performs unexpectedly, Combigene 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 Combigene will offset losses from the drop in Combigene'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 |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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