Correlation Between International Bond and Wasatch Hoisington
Can any of the company-specific risk be diversified away by investing in both International Bond and Wasatch Hoisington 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 International Bond and Wasatch Hoisington into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between International Bond Fund and Wasatch Hoisington Treasury Fund, you can compare the effects of market volatilities on International Bond and Wasatch Hoisington 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 International Bond with a short position of Wasatch Hoisington. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Bond and Wasatch Hoisington.
Diversification Opportunities for International Bond and Wasatch Hoisington
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between International and Wasatch is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding International Bond Fund and Wasatch Hoisington Treasury Fu in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wasatch Hoisington and International Bond 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 International Bond Fund are associated (or correlated) with Wasatch Hoisington. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wasatch Hoisington has no effect on the direction of International Bond i.e., International Bond and Wasatch Hoisington go up and down completely randomly.
Pair Corralation between International Bond and Wasatch Hoisington
Assuming the 90 days horizon International Bond Fund is expected to generate 0.44 times more return on investment than Wasatch Hoisington. However, International Bond Fund is 2.29 times less risky than Wasatch Hoisington. It trades about 0.08 of its potential returns per unit of risk. Wasatch Hoisington Treasury Fund is currently generating about 0.0 per unit of risk. If you would invest 1,049 in International Bond Fund on September 4, 2024 and sell it today you would earn a total of 12.00 from holding International Bond Fund or generate 1.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 8.04% |
| Values | Daily Returns |
International Bond Fund vs. Wasatch Hoisington Treasury Fu
Performance |
| Timeline |
| International Bond |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Wasatch Hoisington |
International Bond and Wasatch Hoisington Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Bond and Wasatch Hoisington
The main advantage of trading using opposite International Bond and Wasatch Hoisington positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Bond position performs unexpectedly, Wasatch Hoisington 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 Wasatch Hoisington will offset losses from the drop in Wasatch Hoisington's long position.| International Bond vs. T Rowe Price | International Bond vs. Global Gold Fund | International Bond vs. Inflation Adjusted Bond Fund | International Bond vs. Loomis Sayles Global |
| Wasatch Hoisington vs. Zero Pon 2025 | Wasatch Hoisington vs. Wasatch World Innovators | Wasatch Hoisington vs. Wasatch Small Cap | Wasatch Hoisington vs. Wasatch International Growth |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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