Correlation Between Auer Growth and Pace International
Can any of the company-specific risk be diversified away by investing in both Auer Growth and Pace International 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 Pace International 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 Pace International Emerging, you can compare the effects of market volatilities on Auer Growth and Pace International 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 Pace International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Auer Growth and Pace International.
Diversification Opportunities for Auer Growth and Pace International
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Auer and Pace is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Auer Growth Fund and Pace International Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pace International 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 Pace International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pace International has no effect on the direction of Auer Growth i.e., Auer Growth and Pace International go up and down completely randomly.
Pair Corralation between Auer Growth and Pace International
Assuming the 90 days horizon Auer Growth Fund is expected to under-perform the Pace International. In addition to that, Auer Growth is 1.05 times more volatile than Pace International Emerging. It trades about -0.19 of its total potential returns per unit of risk. Pace International Emerging is currently generating about -0.2 per unit of volatility. If you would invest 1,327 in Pace International Emerging on January 8, 2025 and sell it today you would lose (109.00) from holding Pace International Emerging or give up 8.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Auer Growth Fund vs. Pace International Emerging
Performance |
| Timeline |
| Auer Growth Fund |
| Pace International |
Auer Growth and Pace International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Auer Growth and Pace International
The main advantage of trading using opposite Auer Growth and Pace International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Auer Growth position performs unexpectedly, Pace International 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 Pace International will offset losses from the drop in Pace International'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 |
| Pace International vs. Ab Global Real | Pace International vs. Franklin Mutual Global | Pace International vs. Qs Defensive Growth | Pace International vs. Rbc Global Equity |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Stocks Directory Find actively traded stocks across global markets | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |