Correlation Between Aristotle Funds and International Investors
Can any of the company-specific risk be diversified away by investing in both Aristotle Funds and International Investors 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 Aristotle Funds and International Investors into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aristotle Funds Series and International Investors Gold, you can compare the effects of market volatilities on Aristotle Funds and International Investors 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 Aristotle Funds with a short position of International Investors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aristotle Funds and International Investors.
Diversification Opportunities for Aristotle Funds and International Investors
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aristotle and International is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Aristotle Funds Series and International Investors Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Investors and Aristotle Funds 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 Aristotle Funds Series are associated (or correlated) with International Investors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Investors has no effect on the direction of Aristotle Funds i.e., Aristotle Funds and International Investors go up and down completely randomly.
Pair Corralation between Aristotle Funds and International Investors
Assuming the 90 days horizon Aristotle Funds Series is expected to generate 0.47 times more return on investment than International Investors. However, Aristotle Funds Series is 2.12 times less risky than International Investors. It trades about 0.09 of its potential returns per unit of risk. International Investors Gold is currently generating about -0.03 per unit of risk. If you would invest 1,437 in Aristotle Funds Series on September 12, 2024 and sell it today you would earn a total of 41.00 from holding Aristotle Funds Series or generate 2.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aristotle Funds Series vs. International Investors Gold
Performance |
| Timeline |
| Aristotle Funds Series |
| International Investors |
Aristotle Funds and International Investors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aristotle Funds and International Investors
The main advantage of trading using opposite Aristotle Funds and International Investors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aristotle Funds position performs unexpectedly, International Investors 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 International Investors will offset losses from the drop in International Investors' long position.| Aristotle Funds vs. Aqr Long Short Equity | Aristotle Funds vs. Rbc Emerging Markets | Aristotle Funds vs. Ab All Market | Aristotle Funds vs. Siit Emerging Markets |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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