Correlation Between Integrity Dividend and Maine Municipal
Can any of the company-specific risk be diversified away by investing in both Integrity Dividend and Maine Municipal 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 Integrity Dividend and Maine Municipal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Integrity Dividend Summit and Maine Municipal Fund, you can compare the effects of market volatilities on Integrity Dividend and Maine Municipal 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 Integrity Dividend with a short position of Maine Municipal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integrity Dividend and Maine Municipal.
Diversification Opportunities for Integrity Dividend and Maine Municipal
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Integrity and Maine is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Integrity Dividend Summit and Maine Municipal Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maine Municipal and Integrity Dividend 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 Integrity Dividend Summit are associated (or correlated) with Maine Municipal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maine Municipal has no effect on the direction of Integrity Dividend i.e., Integrity Dividend and Maine Municipal go up and down completely randomly.
Pair Corralation between Integrity Dividend and Maine Municipal
Assuming the 90 days horizon Integrity Dividend Summit is expected to generate 1.63 times more return on investment than Maine Municipal. However, Integrity Dividend is 1.63 times more volatile than Maine Municipal Fund. It trades about 0.26 of its potential returns per unit of risk. Maine Municipal Fund is currently generating about 0.23 per unit of risk. If you would invest 1,110 in Integrity Dividend Summit on September 3, 2024 and sell it today you would earn a total of 30.00 from holding Integrity Dividend Summit or generate 2.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Integrity Dividend Summit vs. Maine Municipal Fund
Performance |
| Timeline |
| Integrity Dividend Summit |
| Maine Municipal |
Integrity Dividend and Maine Municipal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integrity Dividend and Maine Municipal
The main advantage of trading using opposite Integrity Dividend and Maine Municipal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integrity Dividend position performs unexpectedly, Maine Municipal 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 Maine Municipal will offset losses from the drop in Maine Municipal's long position.| Integrity Dividend vs. Qs Large Cap | Integrity Dividend vs. Touchstone Large Cap | Integrity Dividend vs. Qs Large Cap | Integrity Dividend vs. Fundamental Large Cap |
| Maine Municipal vs. Calvert High Yield | Maine Municipal vs. Pgim High Yield | Maine Municipal vs. Lord Abbett High | Maine Municipal vs. Prudential 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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