Correlation Between Muirfield Fund and Total Return
Can any of the company-specific risk be diversified away by investing in both Muirfield Fund and Total Return 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 Muirfield Fund and Total Return into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Muirfield Fund Retail and Total Return Bond, you can compare the effects of market volatilities on Muirfield Fund and Total Return 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 Muirfield Fund with a short position of Total Return. Check out your portfolio center. Please also check ongoing floating volatility patterns of Muirfield Fund and Total Return.
Diversification Opportunities for Muirfield Fund and Total Return
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Muirfield and Total is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Muirfield Fund Retail and Total Return Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Total Return Bond and Muirfield Fund 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 Muirfield Fund Retail are associated (or correlated) with Total Return. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Total Return Bond has no effect on the direction of Muirfield Fund i.e., Muirfield Fund and Total Return go up and down completely randomly.
Pair Corralation between Muirfield Fund and Total Return
Assuming the 90 days horizon Muirfield Fund Retail is expected to generate 8.25 times more return on investment than Total Return. However, Muirfield Fund is 8.25 times more volatile than Total Return Bond. It trades about 0.11 of its potential returns per unit of risk. Total Return Bond is currently generating about 0.28 per unit of risk. If you would invest 1,070 in Muirfield Fund Retail on August 29, 2024 and sell it today you would earn a total of 21.00 from holding Muirfield Fund Retail or generate 1.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Muirfield Fund Retail vs. Total Return Bond
Performance |
| Timeline |
| Muirfield Fund Retail |
| Total Return Bond |
Muirfield Fund and Total Return Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Muirfield Fund and Total Return
The main advantage of trading using opposite Muirfield Fund and Total Return positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Muirfield Fund position performs unexpectedly, Total Return 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 Total Return will offset losses from the drop in Total Return's long position.| Muirfield Fund vs. Dynamic Growth Fund | Muirfield Fund vs. Infrastructure Fund Retail | Muirfield Fund vs. Quantex Fund Retail | Muirfield Fund vs. Spectrum Fund Retail |
| Total Return vs. Muirfield Fund Retail | Total Return vs. Balanced Fund Retail | Total Return vs. Quantex Fund Retail | Total Return vs. Dynamic Growth 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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