Correlation Between Growth Fund and Ladenburg Growth
Can any of the company-specific risk be diversified away by investing in both Growth Fund and Ladenburg Growth 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 Ladenburg Growth 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 Ladenburg Growth, you can compare the effects of market volatilities on Growth Fund and Ladenburg Growth 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 Ladenburg Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Growth Fund and Ladenburg Growth.
Diversification Opportunities for Growth Fund and Ladenburg Growth
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Growth and Ladenburg is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Growth Fund Of and Ladenburg Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ladenburg Growth 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 Ladenburg Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ladenburg Growth has no effect on the direction of Growth Fund i.e., Growth Fund and Ladenburg Growth go up and down completely randomly.
Pair Corralation between Growth Fund and Ladenburg Growth
Assuming the 90 days horizon Growth Fund Of is expected to generate 1.31 times more return on investment than Ladenburg Growth. However, Growth Fund is 1.31 times more volatile than Ladenburg Growth. It trades about 0.12 of its potential returns per unit of risk. Ladenburg Growth is currently generating about 0.09 per unit of risk. If you would invest 4,742 in Growth Fund Of on September 3, 2024 and sell it today you would earn a total of 3,406 from holding Growth Fund Of or generate 71.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Growth Fund Of vs. Ladenburg Growth
Performance |
| Timeline |
| Growth Fund |
| Ladenburg Growth |
Growth Fund and Ladenburg Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Growth Fund and Ladenburg Growth
The main advantage of trading using opposite Growth Fund and Ladenburg Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Growth Fund position performs unexpectedly, Ladenburg Growth 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 Ladenburg Growth will offset losses from the drop in Ladenburg Growth's long position.| Growth Fund vs. Europac Gold Fund | Growth Fund vs. Global Gold Fund | Growth Fund vs. Fidelity Advisor Gold | Growth Fund vs. Precious Metals And |
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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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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