Correlation Between Avantis Large and Smead International
Can any of the company-specific risk be diversified away by investing in both Avantis Large and Smead International 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 Avantis Large and Smead International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Avantis Large Cap and Smead International Value, you can compare the effects of market volatilities on Avantis Large and Smead International 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 Avantis Large with a short position of Smead International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Avantis Large and Smead International.
Diversification Opportunities for Avantis Large and Smead International
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Avantis and Smead is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Avantis Large Cap and Smead International Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Smead International Value and Avantis Large 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 Avantis Large Cap are associated (or correlated) with Smead International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Smead International Value has no effect on the direction of Avantis Large i.e., Avantis Large and Smead International go up and down completely randomly.
Pair Corralation between Avantis Large and Smead International
If you would invest 1,144 in Avantis Large Cap on September 15, 2024 and sell it today you would earn a total of 332.00 from holding Avantis Large Cap or generate 29.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.0% |
| Values | Daily Returns |
Avantis Large Cap vs. Smead International Value
Performance |
| Timeline |
| Avantis Large Cap |
| Smead International Value |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Avantis Large and Smead International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Avantis Large and Smead International
The main advantage of trading using opposite Avantis Large and Smead International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Avantis Large position performs unexpectedly, Smead International 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 Smead International will offset losses from the drop in Smead International's long position.| Avantis Large vs. Avantis International Small | Avantis Large vs. Avantis International Equity | Avantis Large vs. American Century Etf | Avantis Large vs. Avantis Emerging Markets |
| Smead International vs. Artisan High Income | Smead International vs. Pace High Yield | Smead International vs. California Bond Fund | Smead International vs. T Rowe Price |
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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