Correlation Between Auer Growth and Bond Fund
Can any of the company-specific risk be diversified away by investing in both Auer Growth and Bond 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 Bond 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 Bond Fund Of, you can compare the effects of market volatilities on Auer Growth and Bond 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 Bond Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Auer Growth and Bond Fund.
Diversification Opportunities for Auer Growth and Bond Fund
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Auer and Bond is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Auer Growth Fund and Bond Fund Of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bond Fund 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 Bond Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bond Fund has no effect on the direction of Auer Growth i.e., Auer Growth and Bond Fund go up and down completely randomly.
Pair Corralation between Auer Growth and Bond Fund
Assuming the 90 days horizon Auer Growth Fund is expected to generate 2.97 times more return on investment than Bond Fund. However, Auer Growth is 2.97 times more volatile than Bond Fund Of. It trades about 0.15 of its potential returns per unit of risk. Bond Fund Of is currently generating about 0.06 per unit of risk. If you would invest 1,724 in Auer Growth Fund on August 28, 2024 and sell it today you would earn a total of 57.00 from holding Auer Growth Fund or generate 3.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Auer Growth Fund vs. Bond Fund Of
Performance |
| Timeline |
| Auer Growth Fund |
| Bond Fund |
Auer Growth and Bond Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Auer Growth and Bond Fund
The main advantage of trading using opposite Auer Growth and Bond Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Auer Growth position performs unexpectedly, Bond 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 Bond Fund will offset losses from the drop in Bond 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 |
| Bond Fund vs. Volumetric Fund Volumetric | Bond Fund vs. Auer Growth Fund | Bond Fund vs. Rational Special Situations | Bond Fund vs. Balanced Fund Investor |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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