Correlation Between Brandywineglobal and FAM
Can any of the company-specific risk be diversified away by investing in both Brandywineglobal and FAM 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 Brandywineglobal and FAM into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brandywineglobal Globalome Opportunities and FAM, you can compare the effects of market volatilities on Brandywineglobal and FAM 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 Brandywineglobal with a short position of FAM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brandywineglobal and FAM.
Diversification Opportunities for Brandywineglobal and FAM
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Brandywineglobal and FAM is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Brandywineglobal Globalome Opp and FAM in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FAM and Brandywineglobal 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 Brandywineglobal Globalome Opportunities are associated (or correlated) with FAM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FAM has no effect on the direction of Brandywineglobal i.e., Brandywineglobal and FAM go up and down completely randomly.
Pair Corralation between Brandywineglobal and FAM
Considering the 90-day investment horizon Brandywineglobal is expected to generate 1.83 times less return on investment than FAM. In addition to that, Brandywineglobal is 1.0 times more volatile than FAM. It trades about 0.05 of its total potential returns per unit of risk. FAM is currently generating about 0.09 per unit of volatility. If you would invest 500.00 in FAM on November 2, 2024 and sell it today you would earn a total of 174.00 from holding FAM or generate 34.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 82.19% |
| Values | Daily Returns |
Brandywineglobal Globalome Opp vs. FAM
Performance |
| Timeline |
| Brandywineglobal Glo |
| FAM |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Brandywineglobal and FAM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brandywineglobal and FAM
The main advantage of trading using opposite Brandywineglobal and FAM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brandywineglobal position performs unexpectedly, FAM 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 FAM will offset losses from the drop in FAM's long position.| Brandywineglobal vs. Virtus Global Multi | Brandywineglobal vs. RiverNorth Specialty Finance | Brandywineglobal vs. Western Asset Mortgage | Brandywineglobal vs. Pimco New York |
| FAM vs. Blackstone Gso Long | FAM vs. Blackstone Gso Senior | FAM vs. Nuveen Floating Rate | FAM vs. Pioneer Floating Rate |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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