Correlation Between James Balanced: and Pro-blend(r) Extended
Can any of the company-specific risk be diversified away by investing in both James Balanced: and Pro-blend(r) Extended 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 Pro-blend(r) Extended 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 Pro Blend Extended Term, you can compare the effects of market volatilities on James Balanced: and Pro-blend(r) Extended 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 Pro-blend(r) Extended. Check out your portfolio center. Please also check ongoing floating volatility patterns of James Balanced: and Pro-blend(r) Extended.
Diversification Opportunities for James Balanced: and Pro-blend(r) Extended
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between James and Pro-blend(r) is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding James Balanced Golden and Pro Blend Extended Term in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pro-blend(r) Extended 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 Pro-blend(r) Extended. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pro-blend(r) Extended has no effect on the direction of James Balanced: i.e., James Balanced: and Pro-blend(r) Extended go up and down completely randomly.
Pair Corralation between James Balanced: and Pro-blend(r) Extended
Assuming the 90 days horizon James Balanced Golden is expected to generate 0.94 times more return on investment than Pro-blend(r) Extended. However, James Balanced Golden is 1.06 times less risky than Pro-blend(r) Extended. It trades about 0.11 of its potential returns per unit of risk. Pro Blend Extended Term is currently generating about 0.09 per unit of risk. If you would invest 2,291 in James Balanced Golden on August 30, 2024 and sell it today you would earn a total of 26.00 from holding James Balanced Golden or generate 1.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
James Balanced Golden vs. Pro Blend Extended Term
Performance |
| Timeline |
| James Balanced Golden |
| Pro-blend(r) Extended |
James Balanced: and Pro-blend(r) Extended Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with James Balanced: and Pro-blend(r) Extended
The main advantage of trading using opposite James Balanced: and Pro-blend(r) Extended positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if James Balanced: position performs unexpectedly, Pro-blend(r) Extended 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 Pro-blend(r) Extended will offset losses from the drop in Pro-blend(r) Extended'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 |
| Pro-blend(r) Extended vs. Pro Blend Moderate Term | Pro-blend(r) Extended vs. Pro Blend Maximum Term | Pro-blend(r) Extended vs. Pro Blend Servative Term | Pro-blend(r) Extended vs. Madison Mid Cap |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |