Correlation Between James Balanced: and Strategic Asset
Can any of the company-specific risk be diversified away by investing in both James Balanced: and Strategic Asset 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 Strategic Asset 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 Strategic Asset Management, you can compare the effects of market volatilities on James Balanced: and Strategic Asset 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 Strategic Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of James Balanced: and Strategic Asset.
Diversification Opportunities for James Balanced: and Strategic Asset
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between James and Strategic is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding James Balanced Golden and Strategic Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strategic Asset Mana 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 Strategic Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strategic Asset Mana has no effect on the direction of James Balanced: i.e., James Balanced: and Strategic Asset go up and down completely randomly.
Pair Corralation between James Balanced: and Strategic Asset
Assuming the 90 days horizon James Balanced: is expected to generate 1.1 times less return on investment than Strategic Asset. But when comparing it to its historical volatility, James Balanced Golden is 1.58 times less risky than Strategic Asset. It trades about 0.08 of its potential returns per unit of risk. Strategic Asset Management is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,425 in Strategic Asset Management on October 7, 2024 and sell it today you would earn a total of 291.00 from holding Strategic Asset Management or generate 20.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
James Balanced Golden vs. Strategic Asset Management
Performance |
| Timeline |
| James Balanced Golden |
| Strategic Asset Mana |
James Balanced: and Strategic Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with James Balanced: and Strategic Asset
The main advantage of trading using opposite James Balanced: and Strategic Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if James Balanced: position performs unexpectedly, Strategic Asset 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 Strategic Asset will offset losses from the drop in Strategic Asset'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 |
| Strategic Asset vs. Rationalpier 88 Convertible | Strategic Asset vs. Victory Incore Investment | Strategic Asset vs. Calamos Vertible Fund | Strategic Asset vs. Allianzgi Convertible Income |
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.
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