Correlation Between Bruce Fund and Mairs Power
Can any of the company-specific risk be diversified away by investing in both Bruce Fund and Mairs Power 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 Mairs Power 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 Mairs Power Growth, you can compare the effects of market volatilities on Bruce Fund and Mairs Power 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 Mairs Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bruce Fund and Mairs Power.
Diversification Opportunities for Bruce Fund and Mairs Power
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bruce and Mairs is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Bruce Fund Bruce and Mairs Power Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mairs Power Growth 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 Mairs Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mairs Power Growth has no effect on the direction of Bruce Fund i.e., Bruce Fund and Mairs Power go up and down completely randomly.
Pair Corralation between Bruce Fund and Mairs Power
Assuming the 90 days horizon Bruce Fund is expected to generate 1.99 times less return on investment than Mairs Power. But when comparing it to its historical volatility, Bruce Fund Bruce is 1.68 times less risky than Mairs Power. It trades about 0.1 of its potential returns per unit of risk. Mairs Power Growth is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 16,259 in Mairs Power Growth on September 1, 2024 and sell it today you would earn a total of 2,081 from holding Mairs Power Growth or generate 12.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Bruce Fund Bruce vs. Mairs Power Growth
Performance |
| Timeline |
| Bruce Fund Bruce |
| Mairs Power Growth |
Bruce Fund and Mairs Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bruce Fund and Mairs Power
The main advantage of trading using opposite Bruce Fund and Mairs Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bruce Fund position performs unexpectedly, Mairs Power 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 Mairs Power will offset losses from the drop in Mairs Power'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 |
| Mairs Power vs. Meridian Trarian Fund | Mairs Power vs. Mairs Power Balanced | Mairs Power vs. Clipper Fund Inc | Mairs Power vs. Meridian Growth Fund |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |