Correlation Between Homestead Funds and Bbh Intermediate
Can any of the company-specific risk be diversified away by investing in both Homestead Funds and Bbh Intermediate 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 Homestead Funds and Bbh Intermediate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Homestead Funds and Bbh Intermediate Municipal, you can compare the effects of market volatilities on Homestead Funds and Bbh Intermediate 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 Homestead Funds with a short position of Bbh Intermediate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Homestead Funds and Bbh Intermediate.
Diversification Opportunities for Homestead Funds and Bbh Intermediate
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Homestead and Bbh is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Homestead Funds and Bbh Intermediate Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bbh Intermediate Mun and Homestead Funds 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 Homestead Funds are associated (or correlated) with Bbh Intermediate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bbh Intermediate Mun has no effect on the direction of Homestead Funds i.e., Homestead Funds and Bbh Intermediate go up and down completely randomly.
Pair Corralation between Homestead Funds and Bbh Intermediate
Assuming the 90 days horizon Homestead Funds is expected to generate 1.02 times less return on investment than Bbh Intermediate. In addition to that, Homestead Funds is 2.46 times more volatile than Bbh Intermediate Municipal. It trades about 0.04 of its total potential returns per unit of risk. Bbh Intermediate Municipal is currently generating about 0.1 per unit of volatility. If you would invest 949.00 in Bbh Intermediate Municipal on September 12, 2024 and sell it today you would earn a total of 90.00 from holding Bbh Intermediate Municipal or generate 9.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 86.03% |
| Values | Daily Returns |
Homestead Funds vs. Bbh Intermediate Municipal
Performance |
| Timeline |
| Homestead Funds |
| Bbh Intermediate Mun |
Homestead Funds and Bbh Intermediate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Homestead Funds and Bbh Intermediate
The main advantage of trading using opposite Homestead Funds and Bbh Intermediate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Homestead Funds position performs unexpectedly, Bbh Intermediate 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 Bbh Intermediate will offset losses from the drop in Bbh Intermediate's long position.| Homestead Funds vs. Vanguard Total Stock | Homestead Funds vs. Vanguard 500 Index | Homestead Funds vs. Vanguard Total Stock | Homestead Funds vs. Vanguard Total Stock |
| Bbh Intermediate vs. Tax Exempt Bond | Bbh Intermediate vs. Blackrock National Municipal | Bbh Intermediate vs. SCOR PK | Bbh Intermediate vs. Morningstar Unconstrained Allocation |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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