Correlation Between James Balanced: and Europacific Growth
Can any of the company-specific risk be diversified away by investing in both James Balanced: and Europacific Growth 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 James Balanced: and Europacific Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between James Balanced Golden and Europacific Growth Fund, you can compare the effects of market volatilities on James Balanced: and Europacific Growth 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 James Balanced: with a short position of Europacific Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of James Balanced: and Europacific Growth.
Diversification Opportunities for James Balanced: and Europacific Growth
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between James and Europacific is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding James Balanced Golden and Europacific Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Europacific Growth and James Balanced: 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 James Balanced Golden are associated (or correlated) with Europacific Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Europacific Growth has no effect on the direction of James Balanced: i.e., James Balanced: and Europacific Growth go up and down completely randomly.
Pair Corralation between James Balanced: and Europacific Growth
Assuming the 90 days horizon James Balanced Golden is expected to generate 0.5 times more return on investment than Europacific Growth. However, James Balanced Golden is 2.02 times less risky than Europacific Growth. It trades about -0.21 of its potential returns per unit of risk. Europacific Growth Fund is currently generating about -0.4 per unit of risk. If you would invest 2,284 in James Balanced Golden on October 8, 2024 and sell it today you would lose (49.00) from holding James Balanced Golden or give up 2.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
James Balanced Golden vs. Europacific Growth Fund
Performance |
| Timeline |
| James Balanced Golden |
| Europacific Growth |
James Balanced: and Europacific Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with James Balanced: and Europacific Growth
The main advantage of trading using opposite James Balanced: and Europacific Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if James Balanced: position performs unexpectedly, Europacific Growth 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 Europacific Growth will offset losses from the drop in Europacific Growth's long position.| James Balanced: vs. Permanent Portfolio Class | James Balanced: vs. Berwyn Income Fund | James Balanced: vs. Large Cap Fund | James Balanced: vs. Westcore Plus Bond |
| Europacific Growth vs. Qs Global Equity | Europacific Growth vs. Transamerica Asset Allocation | Europacific Growth vs. Tax Managed Large Cap | Europacific Growth vs. T Rowe Price |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |