Correlation Between Growth Fund and Akre Focus
Can any of the company-specific risk be diversified away by investing in both Growth Fund and Akre Focus 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 Growth Fund and Akre Focus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Growth Fund Of and Akre Focus Fund, you can compare the effects of market volatilities on Growth Fund and Akre Focus 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 Growth Fund with a short position of Akre Focus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Growth Fund and Akre Focus.
Diversification Opportunities for Growth Fund and Akre Focus
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Growth and Akre is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Growth Fund Of and Akre Focus Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akre Focus Fund and Growth 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 Growth Fund Of are associated (or correlated) with Akre Focus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akre Focus Fund has no effect on the direction of Growth Fund i.e., Growth Fund and Akre Focus go up and down completely randomly.
Pair Corralation between Growth Fund and Akre Focus
Assuming the 90 days horizon Growth Fund Of is expected to generate 1.2 times more return on investment than Akre Focus. However, Growth Fund is 1.2 times more volatile than Akre Focus Fund. It trades about 0.1 of its potential returns per unit of risk. Akre Focus Fund is currently generating about 0.12 per unit of risk. If you would invest 5,989 in Growth Fund Of on September 1, 2024 and sell it today you would earn a total of 1,156 from holding Growth Fund Of or generate 19.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Growth Fund Of vs. Akre Focus Fund
Performance |
| Timeline |
| Growth Fund |
| Akre Focus Fund |
Growth Fund and Akre Focus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Growth Fund and Akre Focus
The main advantage of trading using opposite Growth Fund and Akre Focus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Growth Fund position performs unexpectedly, Akre Focus 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 Akre Focus will offset losses from the drop in Akre Focus' long position.| Growth Fund vs. The Gabelli Small | Growth Fund vs. Jhancock Diversified Macro | Growth Fund vs. Oppenheimer International Diversified | Growth Fund vs. Fidelity Advisor Diversified |
| Akre Focus vs. Osterweis Strategic Income | Akre Focus vs. Doubleline Low Duration | Akre Focus vs. Doubleline Total Return | Akre Focus vs. Vanguard Dividend Growth |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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