Correlation Between Growth Fund and INTERNATIONAL ENERGY
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By analyzing existing cross correlation between Growth Fund Of and INTERNATIONAL ENERGY INSURANCE, you can compare the effects of market volatilities on Growth Fund and INTERNATIONAL ENERGY 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 INTERNATIONAL ENERGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Growth Fund and INTERNATIONAL ENERGY.
Diversification Opportunities for Growth Fund and INTERNATIONAL ENERGY
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Growth and INTERNATIONAL is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Growth Fund Of and INTERNATIONAL ENERGY INSURANCE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTERNATIONAL ENERGY 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 INTERNATIONAL ENERGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INTERNATIONAL ENERGY has no effect on the direction of Growth Fund i.e., Growth Fund and INTERNATIONAL ENERGY go up and down completely randomly.
Pair Corralation between Growth Fund and INTERNATIONAL ENERGY
Assuming the 90 days horizon Growth Fund is expected to generate 2.26 times less return on investment than INTERNATIONAL ENERGY. But when comparing it to its historical volatility, Growth Fund Of is 4.43 times less risky than INTERNATIONAL ENERGY. It trades about 0.1 of its potential returns per unit of risk. INTERNATIONAL ENERGY INSURANCE is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 139.00 in INTERNATIONAL ENERGY INSURANCE on November 3, 2024 and sell it today you would earn a total of 54.00 from holding INTERNATIONAL ENERGY INSURANCE or generate 38.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.79% |
| Values | Daily Returns |
Growth Fund Of vs. INTERNATIONAL ENERGY INSURANCE
Performance |
| Timeline |
| Growth Fund |
| INTERNATIONAL ENERGY |
Growth Fund and INTERNATIONAL ENERGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Growth Fund and INTERNATIONAL ENERGY
The main advantage of trading using opposite Growth Fund and INTERNATIONAL ENERGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Growth Fund position performs unexpectedly, INTERNATIONAL ENERGY 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 INTERNATIONAL ENERGY will offset losses from the drop in INTERNATIONAL ENERGY'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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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