Correlation Between Auer Growth and Multimedia Portfolio
Can any of the company-specific risk be diversified away by investing in both Auer Growth and Multimedia Portfolio 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 Auer Growth and Multimedia Portfolio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Auer Growth Fund and Multimedia Portfolio Multimedia, you can compare the effects of market volatilities on Auer Growth and Multimedia Portfolio 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 Auer Growth with a short position of Multimedia Portfolio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Auer Growth and Multimedia Portfolio.
Diversification Opportunities for Auer Growth and Multimedia Portfolio
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Auer and Multimedia is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Auer Growth Fund and Multimedia Portfolio Multimedi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multimedia Portfolio and Auer 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 Auer Growth Fund are associated (or correlated) with Multimedia Portfolio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multimedia Portfolio has no effect on the direction of Auer Growth i.e., Auer Growth and Multimedia Portfolio go up and down completely randomly.
Pair Corralation between Auer Growth and Multimedia Portfolio
Assuming the 90 days horizon Auer Growth Fund is expected to under-perform the Multimedia Portfolio. But the mutual fund apears to be less risky and, when comparing its historical volatility, Auer Growth Fund is 1.42 times less risky than Multimedia Portfolio. The mutual fund trades about -0.01 of its potential returns per unit of risk. The Multimedia Portfolio Multimedia is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 11,306 in Multimedia Portfolio Multimedia on September 13, 2024 and sell it today you would earn a total of 697.00 from holding Multimedia Portfolio Multimedia or generate 6.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Auer Growth Fund vs. Multimedia Portfolio Multimedi
Performance |
| Timeline |
| Auer Growth Fund |
| Multimedia Portfolio |
Auer Growth and Multimedia Portfolio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Auer Growth and Multimedia Portfolio
The main advantage of trading using opposite Auer Growth and Multimedia Portfolio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Auer Growth position performs unexpectedly, Multimedia Portfolio 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 Multimedia Portfolio will offset losses from the drop in Multimedia Portfolio's long position.| Auer Growth vs. Lebenthal Lisanti Small | Auer Growth vs. Hodges Small Cap | Auer Growth vs. Schwartz Value Focused | Auer Growth vs. Oberweis Small Cap Opportunities |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |