Correlation Between Greenspring Fund and Arrow Managed
Can any of the company-specific risk be diversified away by investing in both Greenspring Fund and Arrow Managed 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 Arrow Managed 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 Arrow Managed Futures, you can compare the effects of market volatilities on Greenspring Fund and Arrow Managed 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 Arrow Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greenspring Fund and Arrow Managed.
Diversification Opportunities for Greenspring Fund and Arrow Managed
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Greenspring and Arrow is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Greenspring Fund Retail and Arrow Managed Futures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arrow Managed Futures 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 Arrow Managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arrow Managed Futures has no effect on the direction of Greenspring Fund i.e., Greenspring Fund and Arrow Managed go up and down completely randomly.
Pair Corralation between Greenspring Fund and Arrow Managed
Assuming the 90 days horizon Greenspring Fund Retail is expected to under-perform the Arrow Managed. But the mutual fund apears to be less risky and, when comparing its historical volatility, Greenspring Fund Retail is 1.3 times less risky than Arrow Managed. The mutual fund trades about -0.23 of its potential returns per unit of risk. The Arrow Managed Futures is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 575.00 in Arrow Managed Futures on October 11, 2024 and sell it today you would earn a total of 6.00 from holding Arrow Managed Futures or generate 1.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Greenspring Fund Retail vs. Arrow Managed Futures
Performance |
| Timeline |
| Greenspring Fund Retail |
| Arrow Managed Futures |
Greenspring Fund and Arrow Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greenspring Fund and Arrow Managed
The main advantage of trading using opposite Greenspring Fund and Arrow Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greenspring Fund position performs unexpectedly, Arrow Managed 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 Arrow Managed will offset losses from the drop in Arrow Managed'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 |
| Arrow Managed vs. Monteagle Enhanced Equity | Arrow Managed vs. Ab Select Equity | Arrow Managed vs. Ab Equity Income | Arrow Managed vs. Greenspring Fund Retail |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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