Correlation Between Gateway Fund and Anchor Tactical
Can any of the company-specific risk be diversified away by investing in both Gateway Fund and Anchor Tactical 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 Gateway Fund and Anchor Tactical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gateway Fund Class and Anchor Tactical Equity, you can compare the effects of market volatilities on Gateway Fund and Anchor Tactical 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 Gateway Fund with a short position of Anchor Tactical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gateway Fund and Anchor Tactical.
Diversification Opportunities for Gateway Fund and Anchor Tactical
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gateway and Anchor is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Gateway Fund Class and Anchor Tactical Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anchor Tactical Equity and Gateway 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 Gateway Fund Class are associated (or correlated) with Anchor Tactical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anchor Tactical Equity has no effect on the direction of Gateway Fund i.e., Gateway Fund and Anchor Tactical go up and down completely randomly.
Pair Corralation between Gateway Fund and Anchor Tactical
Assuming the 90 days horizon Gateway Fund Class is expected to generate 0.63 times more return on investment than Anchor Tactical. However, Gateway Fund Class is 1.6 times less risky than Anchor Tactical. It trades about 0.13 of its potential returns per unit of risk. Anchor Tactical Equity is currently generating about 0.01 per unit of risk. If you would invest 3,570 in Gateway Fund Class on August 25, 2024 and sell it today you would earn a total of 1,112 from holding Gateway Fund Class or generate 31.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gateway Fund Class vs. Anchor Tactical Equity
Performance |
| Timeline |
| Gateway Fund Class |
| Anchor Tactical Equity |
Gateway Fund and Anchor Tactical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gateway Fund and Anchor Tactical
The main advantage of trading using opposite Gateway Fund and Anchor Tactical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gateway Fund position performs unexpectedly, Anchor Tactical 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 Anchor Tactical will offset losses from the drop in Anchor Tactical's long position.| Gateway Fund vs. Asg Managed Futures | Gateway Fund vs. Asg Managed Futures | Gateway Fund vs. Natixis Oakmark | Gateway Fund vs. Natixis Oakmark International |
| Anchor Tactical vs. Anchor Tactical Credit | Anchor Tactical vs. Catalystmillburn Hedge Strategy | Anchor Tactical vs. Anchor Risk Managed | Anchor Tactical vs. Kensington Managed Income |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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