Correlation Between Fbjygx and Growth Strategy
Can any of the company-specific risk be diversified away by investing in both Fbjygx and Growth Strategy 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 Fbjygx and Growth Strategy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fbjygx and Growth Strategy Fund, you can compare the effects of market volatilities on Fbjygx and Growth Strategy 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 Fbjygx with a short position of Growth Strategy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fbjygx and Growth Strategy.
Diversification Opportunities for Fbjygx and Growth Strategy
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fbjygx and Growth is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Fbjygx and Growth Strategy Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Growth Strategy and Fbjygx 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 Fbjygx are associated (or correlated) with Growth Strategy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Growth Strategy has no effect on the direction of Fbjygx i.e., Fbjygx and Growth Strategy go up and down completely randomly.
Pair Corralation between Fbjygx and Growth Strategy
Assuming the 90 days trading horizon Fbjygx is expected to generate 1.38 times more return on investment than Growth Strategy. However, Fbjygx is 1.38 times more volatile than Growth Strategy Fund. It trades about 0.23 of its potential returns per unit of risk. Growth Strategy Fund is currently generating about 0.04 per unit of risk. If you would invest 920.00 in Fbjygx on December 11, 2024 and sell it today you would earn a total of 95.00 from holding Fbjygx or generate 10.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 18.35% |
| Values | Daily Returns |
Fbjygx vs. Growth Strategy Fund
Performance |
| Timeline |
| Fbjygx |
| Growth Strategy |
Fbjygx and Growth Strategy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fbjygx and Growth Strategy
The main advantage of trading using opposite Fbjygx and Growth Strategy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fbjygx position performs unexpectedly, Growth Strategy 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 Growth Strategy will offset losses from the drop in Growth Strategy's long position.| Fbjygx vs. Tiaa Cref Real Estate | ||
| Fbjygx vs. Short Real Estate | ||
| Fbjygx vs. Schwab Global Real | ||
| Fbjygx vs. Columbia Real Estate |
| Growth Strategy vs. Pfg American Funds | ||
| Growth Strategy vs. Delaware Limited Term Diversified | ||
| Growth Strategy vs. Blackrock Conservative Prprdptfinstttnl | ||
| Growth Strategy vs. Diversified Bond Fund |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |