Correlation Between Fpa Crescent and Bruce Fund
Can any of the company-specific risk be diversified away by investing in both Fpa Crescent and Bruce 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 Fpa Crescent and Bruce Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fpa Crescent Fund and Bruce Fund Bruce, you can compare the effects of market volatilities on Fpa Crescent and Bruce 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 Fpa Crescent with a short position of Bruce Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fpa Crescent and Bruce Fund.
Diversification Opportunities for Fpa Crescent and Bruce Fund
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fpa and Bruce is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Fpa Crescent Fund and Bruce Fund Bruce in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bruce Fund Bruce and Fpa Crescent 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 Fpa Crescent Fund are associated (or correlated) with Bruce Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bruce Fund Bruce has no effect on the direction of Fpa Crescent i.e., Fpa Crescent and Bruce Fund go up and down completely randomly.
Pair Corralation between Fpa Crescent and Bruce Fund
Assuming the 90 days horizon Fpa Crescent is expected to generate 1.19 times less return on investment than Bruce Fund. In addition to that, Fpa Crescent is 1.15 times more volatile than Bruce Fund Bruce. It trades about 0.07 of its total potential returns per unit of risk. Bruce Fund Bruce is currently generating about 0.1 per unit of volatility. If you would invest 51,225 in Bruce Fund Bruce on September 1, 2024 and sell it today you would earn a total of 3,210 from holding Bruce Fund Bruce or generate 6.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fpa Crescent Fund vs. Bruce Fund Bruce
Performance |
| Timeline |
| Fpa Crescent |
| Bruce Fund Bruce |
Fpa Crescent and Bruce Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fpa Crescent and Bruce Fund
The main advantage of trading using opposite Fpa Crescent and Bruce Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fpa Crescent position performs unexpectedly, Bruce 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 Bruce Fund will offset losses from the drop in Bruce Fund's long position.| Fpa Crescent vs. Permanent Portfolio Class | Fpa Crescent vs. Amg Yacktman Fund | Fpa Crescent vs. Berwyn Income Fund | Fpa Crescent vs. First Eagle Global |
| Bruce Fund vs. Quantitative Longshort Equity | Bruce Fund vs. Barings Active Short | Bruce Fund vs. Ultra Short Fixed Income | Bruce Fund vs. Aqr Sustainable Long Short |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |