Correlation Between Greenspring Fund and American Funds
Can any of the company-specific risk be diversified away by investing in both Greenspring Fund and American Funds 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 American Funds 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 American Funds 2025, you can compare the effects of market volatilities on Greenspring Fund and American Funds 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 American Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greenspring Fund and American Funds.
Diversification Opportunities for Greenspring Fund and American Funds
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Greenspring and American is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Greenspring Fund Retail and American Funds 2025 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Funds 2025 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 American Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Funds 2025 has no effect on the direction of Greenspring Fund i.e., Greenspring Fund and American Funds go up and down completely randomly.
Pair Corralation between Greenspring Fund and American Funds
Assuming the 90 days horizon Greenspring Fund Retail is expected to generate 0.99 times more return on investment than American Funds. However, Greenspring Fund Retail is 1.01 times less risky than American Funds. It trades about 0.23 of its potential returns per unit of risk. American Funds 2025 is currently generating about -0.06 per unit of risk. If you would invest 2,530 in Greenspring Fund Retail on October 24, 2024 and sell it today you would earn a total of 76.00 from holding Greenspring Fund Retail or generate 3.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Greenspring Fund Retail vs. American Funds 2025
Performance |
| Timeline |
| Greenspring Fund Retail |
| American Funds 2025 |
Greenspring Fund and American Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greenspring Fund and American Funds
The main advantage of trading using opposite Greenspring Fund and American Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greenspring Fund position performs unexpectedly, American Funds 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 American Funds will offset losses from the drop in American Funds' 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 |
| American Funds vs. Hartford Municipal Income | American Funds vs. Artisan High Income | American Funds vs. Nuveen Strategic Municipal | American Funds vs. Federated High Yield |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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