Correlation Between James Balanced: and International Government
Can any of the company-specific risk be diversified away by investing in both James Balanced: and International Government 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 International Government 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 International Government Bond, you can compare the effects of market volatilities on James Balanced: and International Government 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 International Government. Check out your portfolio center. Please also check ongoing floating volatility patterns of James Balanced: and International Government.
Diversification Opportunities for James Balanced: and International Government
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between James and International is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding James Balanced Golden and International Government Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Government 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 International Government. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Government has no effect on the direction of James Balanced: i.e., James Balanced: and International Government go up and down completely randomly.
Pair Corralation between James Balanced: and International Government
Assuming the 90 days horizon James Balanced Golden is expected to generate 0.98 times more return on investment than International Government. However, James Balanced Golden is 1.02 times less risky than International Government. It trades about 0.35 of its potential returns per unit of risk. International Government Bond is currently generating about 0.11 per unit of risk. If you would invest 2,263 in James Balanced Golden on September 2, 2024 and sell it today you would earn a total of 65.00 from holding James Balanced Golden or generate 2.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
James Balanced Golden vs. International Government Bond
Performance |
| Timeline |
| James Balanced Golden |
| International Government |
James Balanced: and International Government Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with James Balanced: and International Government
The main advantage of trading using opposite James Balanced: and International Government positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if James Balanced: position performs unexpectedly, International Government 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 International Government will offset losses from the drop in International Government'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 |
| International Government vs. Mid Cap Index | International Government vs. Mid Cap Strategic | International Government vs. Valic Company I | International Government vs. Valic Company I |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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