Correlation Between Bruce Fund and Payden Floating
Can any of the company-specific risk be diversified away by investing in both Bruce Fund and Payden Floating 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 Payden Floating 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 Payden Floating Rate, you can compare the effects of market volatilities on Bruce Fund and Payden Floating 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 Payden Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bruce Fund and Payden Floating.
Diversification Opportunities for Bruce Fund and Payden Floating
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bruce and Payden is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Bruce Fund Bruce and Payden Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Payden Floating Rate 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 Payden Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Payden Floating Rate has no effect on the direction of Bruce Fund i.e., Bruce Fund and Payden Floating go up and down completely randomly.
Pair Corralation between Bruce Fund and Payden Floating
Assuming the 90 days horizon Bruce Fund Bruce is expected to under-perform the Payden Floating. In addition to that, Bruce Fund is 11.11 times more volatile than Payden Floating Rate. It trades about -0.06 of its total potential returns per unit of risk. Payden Floating Rate is currently generating about 0.87 per unit of volatility. If you would invest 975.00 in Payden Floating Rate on October 23, 2024 and sell it today you would earn a total of 8.00 from holding Payden Floating Rate or generate 0.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bruce Fund Bruce vs. Payden Floating Rate
Performance |
| Timeline |
| Bruce Fund Bruce |
| Payden Floating Rate |
Bruce Fund and Payden Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bruce Fund and Payden Floating
The main advantage of trading using opposite Bruce Fund and Payden Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bruce Fund position performs unexpectedly, Payden Floating 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 Payden Floating will offset losses from the drop in Payden Floating's long position.| Bruce Fund vs. Kinetics Market Opportunities | Bruce Fund vs. Jhancock Diversified Macro | Bruce Fund vs. Locorr Market Trend | Bruce Fund vs. Calvert Developed Market |
| Payden Floating vs. Small Cap Stock | Payden Floating vs. Victory Incore Fund | Payden Floating vs. Rbc Funds Trust | Payden Floating vs. Delaware Limited Term Diversified |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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