Correlation Between James Balanced and Short Intermediate
Can any of the company-specific risk be diversified away by investing in both James Balanced and Short Intermediate 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 Short Intermediate 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 Short Intermediate Bond Fund, you can compare the effects of market volatilities on James Balanced and Short Intermediate 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 Short Intermediate. Check out your portfolio center. Please also check ongoing floating volatility patterns of James Balanced and Short Intermediate.
Diversification Opportunities for James Balanced and Short Intermediate
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between James and Short is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding James Balanced Golden and Short Intermediate Bond Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Short Intermediate Bond 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 Short Intermediate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Short Intermediate Bond has no effect on the direction of James Balanced i.e., James Balanced and Short Intermediate go up and down completely randomly.
Pair Corralation between James Balanced and Short Intermediate
Assuming the 90 days horizon James Balanced Golden is expected to generate 3.42 times more return on investment than Short Intermediate. However, James Balanced is 3.42 times more volatile than Short Intermediate Bond Fund. It trades about 0.13 of its potential returns per unit of risk. Short Intermediate Bond Fund is currently generating about 0.13 per unit of risk. If you would invest 2,028 in James Balanced Golden on August 25, 2024 and sell it today you would earn a total of 271.00 from holding James Balanced Golden or generate 13.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
James Balanced Golden vs. Short Intermediate Bond Fund
Performance |
| Timeline |
| James Balanced Golden |
| Short Intermediate Bond |
James Balanced and Short Intermediate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with James Balanced and Short Intermediate
The main advantage of trading using opposite James Balanced and Short Intermediate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if James Balanced position performs unexpectedly, Short Intermediate 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 Short Intermediate will offset losses from the drop in Short Intermediate'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 |
| Short Intermediate vs. Small Pany Fund | Short Intermediate vs. Balanced Fund Institutional | Short Intermediate vs. Income Fund Institutional | Short Intermediate vs. Credit Suisse Floating |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |