Correlation Between Fbanjx and Aggressive Growth
Can any of the company-specific risk be diversified away by investing in both Fbanjx and Aggressive 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 Fbanjx and Aggressive Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fbanjx and Aggressive Growth Portfolio, you can compare the effects of market volatilities on Fbanjx and Aggressive 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 Fbanjx with a short position of Aggressive Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fbanjx and Aggressive Growth.
Diversification Opportunities for Fbanjx and Aggressive Growth
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Fbanjx and Aggressive is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Fbanjx and Aggressive Growth Portfolio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aggressive Growth and Fbanjx 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 Fbanjx are associated (or correlated) with Aggressive Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aggressive Growth has no effect on the direction of Fbanjx i.e., Fbanjx and Aggressive Growth go up and down completely randomly.
Pair Corralation between Fbanjx and Aggressive Growth
Assuming the 90 days trading horizon Fbanjx is expected to generate 5.59 times less return on investment than Aggressive Growth. But when comparing it to its historical volatility, Fbanjx is 2.08 times less risky than Aggressive Growth. It trades about 0.05 of its potential returns per unit of risk. Aggressive Growth Portfolio is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 7,864 in Aggressive Growth Portfolio on November 3, 2024 and sell it today you would earn a total of 1,867 from holding Aggressive Growth Portfolio or generate 23.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 19.35% |
| Values | Daily Returns |
Fbanjx vs. Aggressive Growth Portfolio
Performance |
| Timeline |
| Fbanjx |
| Aggressive Growth |
Fbanjx and Aggressive Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fbanjx and Aggressive Growth
The main advantage of trading using opposite Fbanjx and Aggressive Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fbanjx position performs unexpectedly, Aggressive 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 Aggressive Growth will offset losses from the drop in Aggressive Growth's long position.| Fbanjx vs. Asg Managed Futures | Fbanjx vs. Simt Multi Asset Inflation | Fbanjx vs. Aqr Managed Futures | Fbanjx vs. Ab Bond Inflation |
| Aggressive Growth vs. Columbia Large Cap | Aggressive Growth vs. Columbia Capital Allocation | Aggressive Growth vs. HUMANA INC | Aggressive Growth vs. Aquagold International |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |