Correlation Between Boston Partners and International Fund
Can any of the company-specific risk be diversified away by investing in both Boston Partners and International 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 Boston Partners and International Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boston Partners Longshort and International Fund International, you can compare the effects of market volatilities on Boston Partners and International 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 Boston Partners with a short position of International Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boston Partners and International Fund.
Diversification Opportunities for Boston Partners and International Fund
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Boston and International is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Boston Partners Longshort and International Fund Internation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Fund and Boston Partners 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 Boston Partners Longshort are associated (or correlated) with International Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Fund has no effect on the direction of Boston Partners i.e., Boston Partners and International Fund go up and down completely randomly.
Pair Corralation between Boston Partners and International Fund
Assuming the 90 days horizon Boston Partners is expected to generate 2.16 times less return on investment than International Fund. But when comparing it to its historical volatility, Boston Partners Longshort is 1.36 times less risky than International Fund. It trades about 0.04 of its potential returns per unit of risk. International Fund International is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 2,213 in International Fund International on September 14, 2024 and sell it today you would earn a total of 596.00 from holding International Fund International or generate 26.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Boston Partners Longshort vs. International Fund Internation
Performance |
| Timeline |
| Boston Partners Longshort |
| International Fund |
Boston Partners and International Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boston Partners and International Fund
The main advantage of trading using opposite Boston Partners and International Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boston Partners position performs unexpectedly, International 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 International Fund will offset losses from the drop in International Fund's long position.| Boston Partners vs. Boston Partners Longshort | Boston Partners vs. Blackrock Midcap Index | Boston Partners vs. The Arbitrage Fund | Boston Partners vs. Calamos Market Neutral |
| International Fund vs. Cmg Ultra Short | International Fund vs. Quantitative Longshort Equity | International Fund vs. Boston Partners Longshort | International Fund vs. Easterly Snow Longshort |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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