Correlation Between Eic Value and Mutual Of
Can any of the company-specific risk be diversified away by investing in both Eic Value and Mutual Of 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 Mutual Of 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 Mutual Of America, you can compare the effects of market volatilities on Eic Value and Mutual Of 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 Mutual Of. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eic Value and Mutual Of.
Diversification Opportunities for Eic Value and Mutual Of
Poor diversification
The 3 months correlation between Eic and Mutual is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Eic Value Fund and Mutual Of America in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mutual Of America 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 Mutual Of. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mutual Of America has no effect on the direction of Eic Value i.e., Eic Value and Mutual Of go up and down completely randomly.
Pair Corralation between Eic Value and Mutual Of
Assuming the 90 days horizon Eic Value Fund is expected to generate 0.64 times more return on investment than Mutual Of. However, Eic Value Fund is 1.56 times less risky than Mutual Of. It trades about 0.06 of its potential returns per unit of risk. Mutual Of America is currently generating about 0.03 per unit of risk. If you would invest 1,452 in Eic Value Fund on November 28, 2024 and sell it today you would earn a total of 341.00 from holding Eic Value Fund or generate 23.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eic Value Fund vs. Mutual Of America
Performance |
| Timeline |
| Eic Value Fund |
| Mutual Of America |
Eic Value and Mutual Of Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eic Value and Mutual Of
The main advantage of trading using opposite Eic Value and Mutual Of positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eic Value position performs unexpectedly, Mutual Of 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 Mutual Of will offset losses from the drop in Mutual Of's long position.| Eic Value vs. Ftufox | Eic Value vs. Arrow Managed Futures | Eic Value vs. Fabwx | Eic Value vs. Rational Dividend Capture |
| Mutual Of vs. Franklin Federal Limited Term | Mutual Of vs. Legg Mason Western | Mutual Of vs. Rbc Emerging Markets | Mutual Of vs. Dws Emerging Markets |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Positions Ratings 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 |