Correlation Between Fbanjx and California Bond
Can any of the company-specific risk be diversified away by investing in both Fbanjx and California Bond 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 California Bond into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fbanjx and California Bond Fund, you can compare the effects of market volatilities on Fbanjx and California Bond 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 California Bond. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fbanjx and California Bond.
Diversification Opportunities for Fbanjx and California Bond
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fbanjx and California is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Fbanjx and California Bond Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on California Bond 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 California Bond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of California Bond has no effect on the direction of Fbanjx i.e., Fbanjx and California Bond go up and down completely randomly.
Pair Corralation between Fbanjx and California Bond
Assuming the 90 days trading horizon Fbanjx is expected to generate 2.61 times more return on investment than California Bond. However, Fbanjx is 2.61 times more volatile than California Bond Fund. It trades about 0.11 of its potential returns per unit of risk. California Bond Fund is currently generating about 0.02 per unit of risk. If you would invest 962.00 in Fbanjx on October 28, 2024 and sell it today you would earn a total of 13.00 from holding Fbanjx or generate 1.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 89.47% |
| Values | Daily Returns |
Fbanjx vs. California Bond Fund
Performance |
| Timeline |
| Fbanjx |
| California Bond |
Fbanjx and California Bond Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fbanjx and California Bond
The main advantage of trading using opposite Fbanjx and California Bond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fbanjx position performs unexpectedly, California Bond 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 California Bond will offset losses from the drop in California Bond's long position.| Fbanjx vs. American Funds Retirement | Fbanjx vs. Wilmington Trust Retirement | Fbanjx vs. Blackrock Moderate Prepared | Fbanjx vs. Tiaa Cref Lifestyle Moderate |
| California Bond vs. Putnam Money Market | California Bond vs. Chestnut Street Exchange | California Bond vs. Franklin Government Money | California Bond vs. Edward Jones Money |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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