Correlation Between Eic Value and Global Gold
Can any of the company-specific risk be diversified away by investing in both Eic Value and Global Gold 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 Eic Value and Global Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eic Value Fund and Global Gold Fund, you can compare the effects of market volatilities on Eic Value and Global Gold 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 Eic Value with a short position of Global Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eic Value and Global Gold.
Diversification Opportunities for Eic Value and Global Gold
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Eic and Global is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Eic Value Fund and Global Gold Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Gold Fund and Eic Value 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 Eic Value Fund are associated (or correlated) with Global Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Gold Fund has no effect on the direction of Eic Value i.e., Eic Value and Global Gold go up and down completely randomly.
Pair Corralation between Eic Value and Global Gold
Assuming the 90 days horizon Eic Value Fund is expected to generate 0.42 times more return on investment than Global Gold. However, Eic Value Fund is 2.41 times less risky than Global Gold. It trades about -0.18 of its potential returns per unit of risk. Global Gold Fund is currently generating about -0.19 per unit of risk. If you would invest 1,730 in Eic Value Fund on October 12, 2024 and sell it today you would lose (45.00) from holding Eic Value Fund or give up 2.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eic Value Fund vs. Global Gold Fund
Performance |
| Timeline |
| Eic Value Fund |
| Global Gold Fund |
Eic Value and Global Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eic Value and Global Gold
The main advantage of trading using opposite Eic Value and Global Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eic Value position performs unexpectedly, Global Gold 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 Global Gold will offset losses from the drop in Global Gold's long position.| Eic Value vs. Davis Financial Fund | Eic Value vs. Financial Industries Fund | Eic Value vs. Gabelli Global Financial | Eic Value vs. Goldman Sachs Financial |
| Global Gold vs. Issachar Fund Class | Global Gold vs. Rationalpier 88 Convertible | Global Gold vs. Eic Value Fund | Global Gold vs. Locorr Market Trend |
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 CEOs Directory module to screen CEOs from public companies around the world.
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