Correlation Between Firsthand Alternative and Aristotle Funds
Can any of the company-specific risk be diversified away by investing in both Firsthand Alternative and Aristotle Funds 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 Firsthand Alternative and Aristotle Funds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Firsthand Alternative Energy and Aristotle Funds Series, you can compare the effects of market volatilities on Firsthand Alternative and Aristotle Funds 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 Firsthand Alternative with a short position of Aristotle Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Firsthand Alternative and Aristotle Funds.
Diversification Opportunities for Firsthand Alternative and Aristotle Funds
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Firsthand and Aristotle is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Firsthand Alternative Energy and Aristotle Funds Series in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aristotle Funds Series and Firsthand Alternative 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 Firsthand Alternative Energy are associated (or correlated) with Aristotle Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aristotle Funds Series has no effect on the direction of Firsthand Alternative i.e., Firsthand Alternative and Aristotle Funds go up and down completely randomly.
Pair Corralation between Firsthand Alternative and Aristotle Funds
Assuming the 90 days horizon Firsthand Alternative is expected to generate 35.68 times less return on investment than Aristotle Funds. In addition to that, Firsthand Alternative is 1.92 times more volatile than Aristotle Funds Series. It trades about 0.0 of its total potential returns per unit of risk. Aristotle Funds Series is currently generating about 0.11 per unit of volatility. If you would invest 1,157 in Aristotle Funds Series on September 14, 2024 and sell it today you would earn a total of 310.00 from holding Aristotle Funds Series or generate 26.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Firsthand Alternative Energy vs. Aristotle Funds Series
Performance |
| Timeline |
| Firsthand Alternative |
| Aristotle Funds Series |
Firsthand Alternative and Aristotle Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Firsthand Alternative and Aristotle Funds
The main advantage of trading using opposite Firsthand Alternative and Aristotle Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Firsthand Alternative position performs unexpectedly, Aristotle Funds 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 Aristotle Funds will offset losses from the drop in Aristotle Funds' long position.| Firsthand Alternative vs. Berkshire Focus | Firsthand Alternative vs. Red Oak Technology | Firsthand Alternative vs. Jacob Internet Fund | Firsthand Alternative vs. Kinetics Internet Fund |
| Aristotle Funds vs. Aristotle Funds Series | Aristotle Funds vs. Aristotle International Eq | Aristotle Funds vs. Aristotle Funds Series | Aristotle Funds vs. Aristotle Funds Series |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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