Correlation Between First Investors and Ivy Energy
Can any of the company-specific risk be diversified away by investing in both First Investors and Ivy Energy 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 First Investors and Ivy Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Investors Select and Ivy Energy Fund, you can compare the effects of market volatilities on First Investors and Ivy Energy 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 First Investors with a short position of Ivy Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Investors and Ivy Energy.
Diversification Opportunities for First Investors and Ivy Energy
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between First and Ivy is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding First Investors Select and Ivy Energy Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ivy Energy Fund and First Investors 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 First Investors Select are associated (or correlated) with Ivy Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ivy Energy Fund has no effect on the direction of First Investors i.e., First Investors and Ivy Energy go up and down completely randomly.
Pair Corralation between First Investors and Ivy Energy
Assuming the 90 days horizon First Investors Select is expected to generate 0.99 times more return on investment than Ivy Energy. However, First Investors Select is 1.01 times less risky than Ivy Energy. It trades about 0.2 of its potential returns per unit of risk. Ivy Energy Fund is currently generating about -0.12 per unit of risk. If you would invest 1,267 in First Investors Select on August 25, 2024 and sell it today you would earn a total of 101.00 from holding First Investors Select or generate 7.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Investors Select vs. Ivy Energy Fund
Performance |
| Timeline |
| First Investors Select |
| Ivy Energy Fund |
First Investors and Ivy Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Investors and Ivy Energy
The main advantage of trading using opposite First Investors and Ivy Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Investors position performs unexpectedly, Ivy Energy 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 Ivy Energy will offset losses from the drop in Ivy Energy's long position.| First Investors vs. T Rowe Price | First Investors vs. Knights Of Umbus | First Investors vs. Federated Mdt Large | First Investors vs. Touchstone Large Cap |
| Ivy Energy vs. Optimum Small Mid Cap | Ivy Energy vs. Optimum Small Mid Cap | Ivy Energy vs. First Investors Select | Ivy Energy vs. First Investors Select |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |