Correlation Between Greenspring Fund and Access Flex
Can any of the company-specific risk be diversified away by investing in both Greenspring Fund and Access Flex 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 Access Flex 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 Access Flex High, you can compare the effects of market volatilities on Greenspring Fund and Access Flex 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 Access Flex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greenspring Fund and Access Flex.
Diversification Opportunities for Greenspring Fund and Access Flex
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Greenspring and Access is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Greenspring Fund Retail and Access Flex High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Access Flex High 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 Access Flex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Access Flex High has no effect on the direction of Greenspring Fund i.e., Greenspring Fund and Access Flex go up and down completely randomly.
Pair Corralation between Greenspring Fund and Access Flex
Assuming the 90 days horizon Greenspring Fund Retail is expected to generate 3.66 times more return on investment than Access Flex. However, Greenspring Fund is 3.66 times more volatile than Access Flex High. It trades about 0.08 of its potential returns per unit of risk. Access Flex High is currently generating about 0.1 per unit of risk. If you would invest 2,537 in Greenspring Fund Retail on November 6, 2024 and sell it today you would earn a total of 36.00 from holding Greenspring Fund Retail or generate 1.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Greenspring Fund Retail vs. Access Flex High
Performance |
| Timeline |
| Greenspring Fund Retail |
| Access Flex High |
Greenspring Fund and Access Flex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greenspring Fund and Access Flex
The main advantage of trading using opposite Greenspring Fund and Access Flex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greenspring Fund position performs unexpectedly, Access Flex 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 Access Flex will offset losses from the drop in Access Flex's 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 |
| Access Flex vs. Columbia Global Technology | Access Flex vs. Pgim Jennison Technology | Access Flex vs. Towpath Technology | Access Flex vs. Global Technology Portfolio |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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