Correlation Between Dynamic Growth and Muirfield Fund
Can any of the company-specific risk be diversified away by investing in both Dynamic Growth and Muirfield Fund 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 Dynamic Growth and Muirfield Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dynamic Growth Fund and Muirfield Fund Retail, you can compare the effects of market volatilities on Dynamic Growth and Muirfield Fund 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 Dynamic Growth with a short position of Muirfield Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dynamic Growth and Muirfield Fund.
Diversification Opportunities for Dynamic Growth and Muirfield Fund
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Dynamic and MUIRFIELD is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Dynamic Growth Fund and Muirfield Fund Retail in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Muirfield Fund Retail and Dynamic Growth 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 Dynamic Growth Fund are associated (or correlated) with Muirfield Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Muirfield Fund Retail has no effect on the direction of Dynamic Growth i.e., Dynamic Growth and Muirfield Fund go up and down completely randomly.
Pair Corralation between Dynamic Growth and Muirfield Fund
Assuming the 90 days horizon Dynamic Growth Fund is expected to generate 1.05 times more return on investment than Muirfield Fund. However, Dynamic Growth is 1.05 times more volatile than Muirfield Fund Retail. It trades about 0.09 of its potential returns per unit of risk. Muirfield Fund Retail is currently generating about 0.09 per unit of risk. If you would invest 1,150 in Dynamic Growth Fund on September 4, 2024 and sell it today you would earn a total of 433.00 from holding Dynamic Growth Fund or generate 37.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.8% |
| Values | Daily Returns |
Dynamic Growth Fund vs. Muirfield Fund Retail
Performance |
| Timeline |
| Dynamic Growth |
| Muirfield Fund Retail |
Dynamic Growth and Muirfield Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dynamic Growth and Muirfield Fund
The main advantage of trading using opposite Dynamic Growth and Muirfield Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dynamic Growth position performs unexpectedly, Muirfield Fund 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 Muirfield Fund will offset losses from the drop in Muirfield Fund's long position.| Dynamic Growth vs. Muirfield Fund Retail | Dynamic Growth vs. Quantex Fund Retail | Dynamic Growth vs. Balanced Fund Retail | Dynamic Growth vs. Infrastructure Fund Retail |
| Muirfield Fund vs. Quantex Fund Retail | Muirfield Fund vs. Infrastructure Fund Retail | Muirfield Fund vs. Dynamic Growth Fund | Muirfield Fund vs. Balanced Fund Retail |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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