Correlation Between Falcon Focus and Auer Growth
Can any of the company-specific risk be diversified away by investing in both Falcon Focus and Auer 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 Falcon Focus and Auer Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Falcon Focus Scv and Auer Growth Fund, you can compare the effects of market volatilities on Falcon Focus and Auer 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 Falcon Focus with a short position of Auer Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Falcon Focus and Auer Growth.
Diversification Opportunities for Falcon Focus and Auer Growth
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Falcon and Auer is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Falcon Focus Scv and Auer Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Auer Growth Fund and Falcon Focus 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 Falcon Focus Scv are associated (or correlated) with Auer Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Auer Growth Fund has no effect on the direction of Falcon Focus i.e., Falcon Focus and Auer Growth go up and down completely randomly.
Pair Corralation between Falcon Focus and Auer Growth
Assuming the 90 days horizon Falcon Focus Scv is expected to generate 0.68 times more return on investment than Auer Growth. However, Falcon Focus Scv is 1.48 times less risky than Auer Growth. It trades about 0.09 of its potential returns per unit of risk. Auer Growth Fund is currently generating about 0.05 per unit of risk. If you would invest 947.00 in Falcon Focus Scv on September 3, 2024 and sell it today you would earn a total of 368.00 from holding Falcon Focus Scv or generate 38.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Falcon Focus Scv vs. Auer Growth Fund
Performance |
| Timeline |
| Falcon Focus Scv |
| Auer Growth Fund |
Falcon Focus and Auer Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Falcon Focus and Auer Growth
The main advantage of trading using opposite Falcon Focus and Auer Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Falcon Focus position performs unexpectedly, Auer 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 Auer Growth will offset losses from the drop in Auer Growth's long position.| Falcon Focus vs. Blackrock Inflation Protected | Falcon Focus vs. T Rowe Price | Falcon Focus vs. Oklahoma College Savings | Falcon Focus vs. Inflation Protected Bond Fund |
| Auer Growth vs. Lebenthal Lisanti Small | Auer Growth vs. Hodges Small Cap | Auer Growth vs. Schwartz Value Focused | Auer Growth vs. Oberweis Small Cap Opportunities |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |