Correlation Between Income Growth and 0010EPAF5
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By analyzing existing cross correlation between Income Growth Fund and AEP TEX CENT, you can compare the effects of market volatilities on Income Growth and 0010EPAF5 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 Income Growth with a short position of 0010EPAF5. Check out your portfolio center. Please also check ongoing floating volatility patterns of Income Growth and 0010EPAF5.
Diversification Opportunities for Income Growth and 0010EPAF5
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Income and 0010EPAF5 is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Income Growth Fund and AEP TEX CENT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AEP TEX CENT and Income 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 Income Growth Fund are associated (or correlated) with 0010EPAF5. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AEP TEX CENT has no effect on the direction of Income Growth i.e., Income Growth and 0010EPAF5 go up and down completely randomly.
Pair Corralation between Income Growth and 0010EPAF5
Assuming the 90 days horizon Income Growth Fund is expected to generate 0.99 times more return on investment than 0010EPAF5. However, Income Growth Fund is 1.01 times less risky than 0010EPAF5. It trades about 0.34 of its potential returns per unit of risk. AEP TEX CENT is currently generating about -0.13 per unit of risk. If you would invest 3,727 in Income Growth Fund on September 2, 2024 and sell it today you would earn a total of 221.00 from holding Income Growth Fund or generate 5.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 66.67% |
| Values | Daily Returns |
Income Growth Fund vs. AEP TEX CENT
Performance |
| Timeline |
| Income Growth |
| AEP TEX CENT |
Income Growth and 0010EPAF5 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Income Growth and 0010EPAF5
The main advantage of trading using opposite Income Growth and 0010EPAF5 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Income Growth position performs unexpectedly, 0010EPAF5 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 0010EPAF5 will offset losses from the drop in 0010EPAF5's long position.| Income Growth vs. Ultra Fund I | Income Growth vs. Value Fund I | Income Growth vs. Equity Growth Fund | Income Growth vs. International Growth Fund |
| 0010EPAF5 vs. East Africa Metals | 0010EPAF5 vs. Skillful Craftsman Education | 0010EPAF5 vs. Summit Materials | 0010EPAF5 vs. Saia Inc |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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