Correlation Between Auer Growth and Issachar Fund
Can any of the company-specific risk be diversified away by investing in both Auer Growth and Issachar Fund 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 Issachar Fund 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 Issachar Fund Class, you can compare the effects of market volatilities on Auer Growth and Issachar Fund 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 Issachar Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Auer Growth and Issachar Fund.
Diversification Opportunities for Auer Growth and Issachar Fund
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Auer and Issachar is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Auer Growth Fund and Issachar Fund Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Issachar Fund Class 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 Issachar Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Issachar Fund Class has no effect on the direction of Auer Growth i.e., Auer Growth and Issachar Fund go up and down completely randomly.
Pair Corralation between Auer Growth and Issachar Fund
Assuming the 90 days horizon Auer Growth is expected to generate 2.03 times less return on investment than Issachar Fund. In addition to that, Auer Growth is 1.16 times more volatile than Issachar Fund Class. It trades about 0.1 of its total potential returns per unit of risk. Issachar Fund Class is currently generating about 0.25 per unit of volatility. If you would invest 936.00 in Issachar Fund Class on September 2, 2024 and sell it today you would earn a total of 121.00 from holding Issachar Fund Class or generate 12.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Auer Growth Fund vs. Issachar Fund Class
Performance |
| Timeline |
| Auer Growth Fund |
| Issachar Fund Class |
Auer Growth and Issachar Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Auer Growth and Issachar Fund
The main advantage of trading using opposite Auer Growth and Issachar Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Auer Growth position performs unexpectedly, Issachar Fund 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 Issachar Fund will offset losses from the drop in Issachar Fund'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 |
| Issachar Fund vs. Chestnut Street Exchange | Issachar Fund vs. Pimco Funds | Issachar Fund vs. Legg Mason Partners | Issachar Fund vs. Transamerica Funds |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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