Correlation Between Growth Fund and Southwestern
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By analyzing existing cross correlation between Growth Fund Of and Southwestern Energy 495, you can compare the effects of market volatilities on Growth Fund and Southwestern 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 Southwestern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Growth Fund and Southwestern.
Diversification Opportunities for Growth Fund and Southwestern
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Growth and Southwestern is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Growth Fund Of and Southwestern Energy 495 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Southwestern Energy 495 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 Southwestern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Southwestern Energy 495 has no effect on the direction of Growth Fund i.e., Growth Fund and Southwestern go up and down completely randomly.
Pair Corralation between Growth Fund and Southwestern
Assuming the 90 days horizon Growth Fund Of is expected to generate 2.58 times more return on investment than Southwestern. However, Growth Fund is 2.58 times more volatile than Southwestern Energy 495. It trades about 0.11 of its potential returns per unit of risk. Southwestern Energy 495 is currently generating about 0.03 per unit of risk. If you would invest 6,488 in Growth Fund Of on November 3, 2024 and sell it today you would earn a total of 1,343 from holding Growth Fund Of or generate 20.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 87.03% |
| Values | Daily Returns |
Growth Fund Of vs. Southwestern Energy 495
Performance |
| Timeline |
| Growth Fund |
| Southwestern Energy 495 |
Growth Fund and Southwestern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Growth Fund and Southwestern
The main advantage of trading using opposite Growth Fund and Southwestern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Growth Fund position performs unexpectedly, Southwestern 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 Southwestern will offset losses from the drop in Southwestern'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 |
| Southwestern vs. AEP TEX INC | Southwestern vs. US BANK NATIONAL | Southwestern vs. LightPath Technologies | Southwestern vs. Reliance Global Group |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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