Correlation Between Growth Fund and Enags SA
Can any of the company-specific risk be diversified away by investing in both Growth Fund and Enags SA 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 Enags SA 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 Enags SA, you can compare the effects of market volatilities on Growth Fund and Enags SA 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 Enags SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Growth Fund and Enags SA.
Diversification Opportunities for Growth Fund and Enags SA
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Growth and Enags is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Growth Fund Of and Enags SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enags SA 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 Enags SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enags SA has no effect on the direction of Growth Fund i.e., Growth Fund and Enags SA go up and down completely randomly.
Pair Corralation between Growth Fund and Enags SA
Assuming the 90 days horizon Growth Fund Of is expected to generate 1.03 times more return on investment than Enags SA. However, Growth Fund is 1.03 times more volatile than Enags SA. It trades about 0.14 of its potential returns per unit of risk. Enags SA is currently generating about 0.11 per unit of risk. If you would invest 7,594 in Growth Fund Of on October 24, 2024 and sell it today you would earn a total of 193.00 from holding Growth Fund Of or generate 2.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
Growth Fund Of vs. Enags SA
Performance |
| Timeline |
| Growth Fund |
| Enags SA |
Growth Fund and Enags SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Growth Fund and Enags SA
The main advantage of trading using opposite Growth Fund and Enags SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Growth Fund position performs unexpectedly, Enags SA 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 Enags SA will offset losses from the drop in Enags SA'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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |