Correlation Between Equity Growth and Performance Trust
Can any of the company-specific risk be diversified away by investing in both Equity Growth and Performance Trust 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 Equity Growth and Performance Trust into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Equity Growth Fund and Performance Trust Strategic, you can compare the effects of market volatilities on Equity Growth and Performance Trust 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 Equity Growth with a short position of Performance Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Equity Growth and Performance Trust.
Diversification Opportunities for Equity Growth and Performance Trust
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Equity and Performance is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Equity Growth Fund and Performance Trust Strategic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Performance Trust and Equity Growth 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 Equity Growth Fund are associated (or correlated) with Performance Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Performance Trust has no effect on the direction of Equity Growth i.e., Equity Growth and Performance Trust go up and down completely randomly.
Pair Corralation between Equity Growth and Performance Trust
Assuming the 90 days horizon Equity Growth Fund is expected to generate 2.68 times more return on investment than Performance Trust. However, Equity Growth is 2.68 times more volatile than Performance Trust Strategic. It trades about 0.13 of its potential returns per unit of risk. Performance Trust Strategic is currently generating about 0.1 per unit of risk. If you would invest 3,001 in Equity Growth Fund on September 1, 2024 and sell it today you would earn a total of 435.00 from holding Equity Growth Fund or generate 14.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Equity Growth Fund vs. Performance Trust Strategic
Performance |
| Timeline |
| Equity Growth |
| Performance Trust |
Equity Growth and Performance Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Equity Growth and Performance Trust
The main advantage of trading using opposite Equity Growth and Performance Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Equity Growth position performs unexpectedly, Performance Trust 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 Performance Trust will offset losses from the drop in Performance Trust's long position.| Equity Growth vs. Oklahoma College Savings | Equity Growth vs. Ab Bond Inflation | Equity Growth vs. Cref Inflation Linked Bond | Equity Growth vs. Ab Bond Inflation |
| Performance Trust vs. Alphacentric Income Opportunities | Performance Trust vs. Performance Trust Municipal | Performance Trust vs. Guggenheim Total Return | Performance Trust vs. Pimco Income Fund |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |