Correlation Between Bbh Intermediate and Homestead Funds
Can any of the company-specific risk be diversified away by investing in both Bbh Intermediate and Homestead Funds 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 Homestead Funds 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 Homestead Funds , you can compare the effects of market volatilities on Bbh Intermediate and Homestead Funds 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 Homestead Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bbh Intermediate and Homestead Funds.
Diversification Opportunities for Bbh Intermediate and Homestead Funds
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bbh and Homestead is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Bbh Intermediate Municipal and Homestead Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Homestead Funds 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 Homestead Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Homestead Funds has no effect on the direction of Bbh Intermediate i.e., Bbh Intermediate and Homestead Funds go up and down completely randomly.
Pair Corralation between Bbh Intermediate and Homestead Funds
Assuming the 90 days horizon Bbh Intermediate Municipal is expected to generate 0.41 times more return on investment than Homestead Funds. However, Bbh Intermediate Municipal is 2.46 times less risky than Homestead Funds. It trades about 0.1 of its potential returns per unit of risk. Homestead Funds is currently generating about 0.04 per unit of risk. If you would invest 949.00 in Bbh Intermediate Municipal on September 12, 2024 and sell it today you would earn a total of 90.00 from holding Bbh Intermediate Municipal or generate 9.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 86.03% |
| Values | Daily Returns |
Bbh Intermediate Municipal vs. Homestead Funds
Performance |
| Timeline |
| Bbh Intermediate Mun |
| Homestead Funds |
Bbh Intermediate and Homestead Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bbh Intermediate and Homestead Funds
The main advantage of trading using opposite Bbh Intermediate and Homestead Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bbh Intermediate position performs unexpectedly, Homestead Funds 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 Homestead Funds will offset losses from the drop in Homestead Funds' long position.| Bbh Intermediate vs. Tax Exempt Bond | Bbh Intermediate vs. Blackrock National Municipal | Bbh Intermediate vs. SCOR PK | Bbh Intermediate vs. Morningstar Unconstrained Allocation |
| Homestead Funds vs. Vanguard Total Stock | Homestead Funds vs. Vanguard 500 Index | Homestead Funds vs. Vanguard Total Stock | Homestead Funds vs. Vanguard Total Stock |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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