Correlation Between Europac Gold and Boston Partners
Can any of the company-specific risk be diversified away by investing in both Europac Gold and Boston Partners 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 Europac Gold and Boston Partners into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Europac Gold Fund and Boston Partners Emerging, you can compare the effects of market volatilities on Europac Gold and Boston Partners 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 Europac Gold with a short position of Boston Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of Europac Gold and Boston Partners.
Diversification Opportunities for Europac Gold and Boston Partners
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Europac and Boston is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Europac Gold Fund and Boston Partners Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boston Partners Emerging and Europac Gold 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 Europac Gold Fund are associated (or correlated) with Boston Partners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boston Partners Emerging has no effect on the direction of Europac Gold i.e., Europac Gold and Boston Partners go up and down completely randomly.
Pair Corralation between Europac Gold and Boston Partners
If you would invest 919.00 in Europac Gold Fund on October 20, 2024 and sell it today you would earn a total of 46.00 from holding Europac Gold Fund or generate 5.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 5.0% |
| Values | Daily Returns |
Europac Gold Fund vs. Boston Partners Emerging
Performance |
| Timeline |
| Europac Gold |
| Boston Partners Emerging |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Europac Gold and Boston Partners Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Europac Gold and Boston Partners
The main advantage of trading using opposite Europac Gold and Boston Partners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Europac Gold position performs unexpectedly, Boston Partners 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 Boston Partners will offset losses from the drop in Boston Partners' long position.| Europac Gold vs. Europac International Value | Europac Gold vs. Europac International Dividend | Europac Gold vs. Ep Emerging Markets | Europac Gold vs. Europac International Bond |
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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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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