Correlation Between Intech Managed and Henderson European
Can any of the company-specific risk be diversified away by investing in both Intech Managed and Henderson European 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 Intech Managed and Henderson European into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intech Managed Volatility and Henderson European Focus, you can compare the effects of market volatilities on Intech Managed and Henderson European 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 Intech Managed with a short position of Henderson European. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intech Managed and Henderson European.
Diversification Opportunities for Intech Managed and Henderson European
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Intech and Henderson is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Intech Managed Volatility and Henderson European Focus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Henderson European Focus and Intech Managed 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 Intech Managed Volatility are associated (or correlated) with Henderson European. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Henderson European Focus has no effect on the direction of Intech Managed i.e., Intech Managed and Henderson European go up and down completely randomly.
Pair Corralation between Intech Managed and Henderson European
Assuming the 90 days horizon Intech Managed Volatility is expected to generate 0.8 times more return on investment than Henderson European. However, Intech Managed Volatility is 1.25 times less risky than Henderson European. It trades about 0.08 of its potential returns per unit of risk. Henderson European Focus is currently generating about 0.05 per unit of risk. If you would invest 922.00 in Intech Managed Volatility on August 26, 2024 and sell it today you would earn a total of 317.00 from holding Intech Managed Volatility or generate 34.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intech Managed Volatility vs. Henderson European Focus
Performance |
| Timeline |
| Intech Managed Volatility |
| Henderson European Focus |
Intech Managed and Henderson European Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intech Managed and Henderson European
The main advantage of trading using opposite Intech Managed and Henderson European positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intech Managed position performs unexpectedly, Henderson European 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 Henderson European will offset losses from the drop in Henderson European's long position.| Intech Managed vs. Classic Value Fund | Intech Managed vs. Legg Mason Bw | Intech Managed vs. Strategic Income Opportunities | Intech Managed vs. Us Global Leaders |
| Henderson European vs. Janus Henderson European | Henderson European vs. Janus Henderson European | Henderson European vs. Janus Research Fund | Henderson European vs. Janus Research Fund |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |