Correlation Between Greenspring Fund and First Investors
Can any of the company-specific risk be diversified away by investing in both Greenspring Fund and First Investors 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 Greenspring Fund and First Investors into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Greenspring Fund Retail and First Investors Total, you can compare the effects of market volatilities on Greenspring Fund and First Investors 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 Greenspring Fund with a short position of First Investors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greenspring Fund and First Investors.
Diversification Opportunities for Greenspring Fund and First Investors
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Greenspring and First is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Greenspring Fund Retail and First Investors Total in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Investors Total and Greenspring Fund 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 Greenspring Fund Retail are associated (or correlated) with First Investors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Investors Total has no effect on the direction of Greenspring Fund i.e., Greenspring Fund and First Investors go up and down completely randomly.
Pair Corralation between Greenspring Fund and First Investors
If you would invest 2,516 in Greenspring Fund Retail on November 3, 2024 and sell it today you would earn a total of 77.00 from holding Greenspring Fund Retail or generate 3.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 5.0% |
| Values | Daily Returns |
Greenspring Fund Retail vs. First Investors Total
Performance |
| Timeline |
| Greenspring Fund Retail |
| First Investors Total |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Greenspring Fund and First Investors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greenspring Fund and First Investors
The main advantage of trading using opposite Greenspring Fund and First Investors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greenspring Fund position performs unexpectedly, First Investors 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 First Investors will offset losses from the drop in First Investors' long position.| Greenspring Fund vs. Berwyn Income Fund | Greenspring Fund vs. Fpa Crescent Fund | Greenspring Fund vs. James Balanced Golden | Greenspring Fund vs. Permanent Portfolio Class |
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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 Valuation module to check real value of public entities based on technical and fundamental data.
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