Correlation Between Bruce Fund and Fpa Crescent
Can any of the company-specific risk be diversified away by investing in both Bruce Fund and Fpa Crescent 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 Bruce Fund and Fpa Crescent into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bruce Fund Bruce and Fpa Crescent Fund, you can compare the effects of market volatilities on Bruce Fund and Fpa Crescent 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 Bruce Fund with a short position of Fpa Crescent. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bruce Fund and Fpa Crescent.
Diversification Opportunities for Bruce Fund and Fpa Crescent
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bruce and Fpa is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Bruce Fund Bruce and Fpa Crescent Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fpa Crescent and Bruce Fund 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 Bruce Fund Bruce are associated (or correlated) with Fpa Crescent. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fpa Crescent has no effect on the direction of Bruce Fund i.e., Bruce Fund and Fpa Crescent go up and down completely randomly.
Pair Corralation between Bruce Fund and Fpa Crescent
Assuming the 90 days horizon Bruce Fund Bruce is expected to generate 0.87 times more return on investment than Fpa Crescent. However, Bruce Fund Bruce is 1.15 times less risky than Fpa Crescent. It trades about 0.1 of its potential returns per unit of risk. Fpa Crescent Fund is currently generating about 0.07 per unit of risk. If you would invest 51,225 in Bruce Fund Bruce on September 1, 2024 and sell it today you would earn a total of 3,210 from holding Bruce Fund Bruce or generate 6.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bruce Fund Bruce vs. Fpa Crescent Fund
Performance |
| Timeline |
| Bruce Fund Bruce |
| Fpa Crescent |
Bruce Fund and Fpa Crescent Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bruce Fund and Fpa Crescent
The main advantage of trading using opposite Bruce Fund and Fpa Crescent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bruce Fund position performs unexpectedly, Fpa Crescent 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 Fpa Crescent will offset losses from the drop in Fpa Crescent's long position.| Bruce Fund vs. Quantitative Longshort Equity | Bruce Fund vs. Barings Active Short | Bruce Fund vs. Ultra Short Fixed Income | Bruce Fund vs. Aqr Sustainable Long Short |
| Fpa Crescent vs. Permanent Portfolio Class | Fpa Crescent vs. Amg Yacktman Fund | Fpa Crescent vs. Berwyn Income Fund | Fpa Crescent vs. First Eagle Global |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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