Correlation Between Akre Focus and Bbh Partner
Can any of the company-specific risk be diversified away by investing in both Akre Focus and Bbh Partner 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 Akre Focus and Bbh Partner into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Akre Focus Fund and Bbh Partner Fund, you can compare the effects of market volatilities on Akre Focus and Bbh Partner 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 Akre Focus with a short position of Bbh Partner. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akre Focus and Bbh Partner.
Diversification Opportunities for Akre Focus and Bbh Partner
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Akre and BBH is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Akre Focus Fund and Bbh Partner Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bbh Partner Fund and Akre Focus 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 Akre Focus Fund are associated (or correlated) with Bbh Partner. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bbh Partner Fund has no effect on the direction of Akre Focus i.e., Akre Focus and Bbh Partner go up and down completely randomly.
Pair Corralation between Akre Focus and Bbh Partner
Assuming the 90 days horizon Akre Focus Fund is expected to generate 0.96 times more return on investment than Bbh Partner. However, Akre Focus Fund is 1.04 times less risky than Bbh Partner. It trades about 0.12 of its potential returns per unit of risk. Bbh Partner Fund is currently generating about 0.05 per unit of risk. If you would invest 5,357 in Akre Focus Fund on September 2, 2024 and sell it today you would earn a total of 2,227 from holding Akre Focus Fund or generate 41.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Akre Focus Fund vs. Bbh Partner Fund
Performance |
| Timeline |
| Akre Focus Fund |
| Bbh Partner Fund |
Akre Focus and Bbh Partner Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akre Focus and Bbh Partner
The main advantage of trading using opposite Akre Focus and Bbh Partner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akre Focus position performs unexpectedly, Bbh Partner 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 Bbh Partner will offset losses from the drop in Bbh Partner's long position.The idea behind Akre Focus Fund and Bbh Partner Fund pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Bbh Partner vs. Calvert Long Term Income | Bbh Partner vs. Aquagold International | Bbh Partner vs. Thrivent High Yield | Bbh Partner vs. Morningstar Unconstrained Allocation |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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