Correlation Between Ivy Apollo and Optimum International
Can any of the company-specific risk be diversified away by investing in both Ivy Apollo and Optimum International 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 Ivy Apollo and Optimum International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ivy Apollo Multi Asset and Optimum International Fund, you can compare the effects of market volatilities on Ivy Apollo and Optimum International 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 Ivy Apollo with a short position of Optimum International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ivy Apollo and Optimum International.
Diversification Opportunities for Ivy Apollo and Optimum International
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ivy and Optimum is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Ivy Apollo Multi Asset and Optimum International Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Optimum International and Ivy Apollo 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 Ivy Apollo Multi Asset are associated (or correlated) with Optimum International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Optimum International has no effect on the direction of Ivy Apollo i.e., Ivy Apollo and Optimum International go up and down completely randomly.
Pair Corralation between Ivy Apollo and Optimum International
Assuming the 90 days horizon Ivy Apollo Multi Asset is expected to generate 0.66 times more return on investment than Optimum International. However, Ivy Apollo Multi Asset is 1.51 times less risky than Optimum International. It trades about -0.02 of its potential returns per unit of risk. Optimum International Fund is currently generating about -0.07 per unit of risk. If you would invest 970.00 in Ivy Apollo Multi Asset on August 30, 2024 and sell it today you would lose (2.00) from holding Ivy Apollo Multi Asset or give up 0.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ivy Apollo Multi Asset vs. Optimum International Fund
Performance |
| Timeline |
| Ivy Apollo Multi |
| Optimum International |
Ivy Apollo and Optimum International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ivy Apollo and Optimum International
The main advantage of trading using opposite Ivy Apollo and Optimum International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ivy Apollo position performs unexpectedly, Optimum International 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 Optimum International will offset losses from the drop in Optimum International's long position.| Ivy Apollo vs. Dunham Large Cap | Ivy Apollo vs. Qs Large Cap | Ivy Apollo vs. Fidelity Series 1000 | Ivy Apollo vs. Pace Large Value |
| Optimum International vs. Msift High Yield | Optimum International vs. Pimco High Yield | Optimum International vs. Artisan High Income | Optimum International vs. Ppm 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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