Correlation Between Bbh Intermediate and Technology Fund
Can any of the company-specific risk be diversified away by investing in both Bbh Intermediate and Technology 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 Bbh Intermediate and Technology Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bbh Intermediate Municipal and Technology Fund Class, you can compare the effects of market volatilities on Bbh Intermediate and Technology 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 Bbh Intermediate with a short position of Technology Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bbh Intermediate and Technology Fund.
Diversification Opportunities for Bbh Intermediate and Technology Fund
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BBH and Technology is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Bbh Intermediate Municipal and Technology Fund Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Technology Fund Class and Bbh Intermediate 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 Bbh Intermediate Municipal are associated (or correlated) with Technology Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Technology Fund Class has no effect on the direction of Bbh Intermediate i.e., Bbh Intermediate and Technology Fund go up and down completely randomly.
Pair Corralation between Bbh Intermediate and Technology Fund
Assuming the 90 days horizon Bbh Intermediate is expected to generate 5.19 times less return on investment than Technology Fund. But when comparing it to its historical volatility, Bbh Intermediate Municipal is 7.67 times less risky than Technology Fund. It trades about 0.12 of its potential returns per unit of risk. Technology Fund Class is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 14,166 in Technology Fund Class on September 3, 2024 and sell it today you would earn a total of 2,138 from holding Technology Fund Class or generate 15.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bbh Intermediate Municipal vs. Technology Fund Class
Performance |
| Timeline |
| Bbh Intermediate Mun |
| Technology Fund Class |
Bbh Intermediate and Technology Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bbh Intermediate and Technology Fund
The main advantage of trading using opposite Bbh Intermediate and Technology Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bbh Intermediate position performs unexpectedly, Technology 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 Technology Fund will offset losses from the drop in Technology Fund's long position.| Bbh Intermediate vs. Tiaa Cref Inflation Linked Bond | Bbh Intermediate vs. Blackrock Inflation Protected | Bbh Intermediate vs. Goldman Sachs Managed | Bbh Intermediate vs. Aqr Managed Futures |
| Technology Fund vs. Bbh Intermediate Municipal | Technology Fund vs. Alliancebernstein National Municipal | Technology Fund vs. Limited Term Tax | Technology Fund vs. Intermediate Term Tax Free Bond |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| 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 |