Correlation Between Growth Fund and EA Series
Can any of the company-specific risk be diversified away by investing in both Growth Fund and EA Series 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 EA Series 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 EA Series Trust, you can compare the effects of market volatilities on Growth Fund and EA Series 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 EA Series. Check out your portfolio center. Please also check ongoing floating volatility patterns of Growth Fund and EA Series.
Diversification Opportunities for Growth Fund and EA Series
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Growth and STRV is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Growth Fund Of and EA Series Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EA Series Trust 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 EA Series. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EA Series Trust has no effect on the direction of Growth Fund i.e., Growth Fund and EA Series go up and down completely randomly.
Pair Corralation between Growth Fund and EA Series
Assuming the 90 days horizon Growth Fund Of is expected to generate 1.21 times more return on investment than EA Series. However, Growth Fund is 1.21 times more volatile than EA Series Trust. It trades about 0.03 of its potential returns per unit of risk. EA Series Trust is currently generating about 0.0 per unit of risk. If you would invest 7,744 in Growth Fund Of on November 4, 2024 and sell it today you would earn a total of 87.00 from holding Growth Fund Of or generate 1.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Growth Fund Of vs. EA Series Trust
Performance |
| Timeline |
| Growth Fund |
| EA Series Trust |
Growth Fund and EA Series Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Growth Fund and EA Series
The main advantage of trading using opposite Growth Fund and EA Series positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Growth Fund position performs unexpectedly, EA Series 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 EA Series will offset losses from the drop in EA Series' 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 |
| EA Series vs. EA Series Trust | EA Series vs. EA Series Trust | EA Series vs. EA Series Trust | EA Series vs. EA Series Trust |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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