Correlation Between Growth Fund and Copper 360
Can any of the company-specific risk be diversified away by investing in both Growth Fund and Copper 360 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 Copper 360 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 Copper 360, you can compare the effects of market volatilities on Growth Fund and Copper 360 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 Copper 360. Check out your portfolio center. Please also check ongoing floating volatility patterns of Growth Fund and Copper 360.
Diversification Opportunities for Growth Fund and Copper 360
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Growth and Copper is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Growth Fund Of and Copper 360 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Copper 360 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 Copper 360. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Copper 360 has no effect on the direction of Growth Fund i.e., Growth Fund and Copper 360 go up and down completely randomly.
Pair Corralation between Growth Fund and Copper 360
Assuming the 90 days horizon Growth Fund Of is expected to generate 0.39 times more return on investment than Copper 360. However, Growth Fund Of is 2.54 times less risky than Copper 360. It trades about 0.24 of its potential returns per unit of risk. Copper 360 is currently generating about -0.04 per unit of risk. If you would invest 7,457 in Growth Fund Of on November 3, 2024 and sell it today you would earn a total of 374.00 from holding Growth Fund Of or generate 5.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
Growth Fund Of vs. Copper 360
Performance |
| Timeline |
| Growth Fund |
| Copper 360 |
Growth Fund and Copper 360 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Growth Fund and Copper 360
The main advantage of trading using opposite Growth Fund and Copper 360 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Growth Fund position performs unexpectedly, Copper 360 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 Copper 360 will offset losses from the drop in Copper 360'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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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