Correlation Between Korea Closed and Appleseed Fund
Can any of the company-specific risk be diversified away by investing in both Korea Closed and Appleseed Fund 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 Korea Closed and Appleseed Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Korea Closed and Appleseed Fund Appleseed, you can compare the effects of market volatilities on Korea Closed and Appleseed Fund 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 Korea Closed with a short position of Appleseed Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Korea Closed and Appleseed Fund.
Diversification Opportunities for Korea Closed and Appleseed Fund
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Korea and Appleseed is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Korea Closed and Appleseed Fund Appleseed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Appleseed Fund Appleseed and Korea Closed 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 Korea Closed are associated (or correlated) with Appleseed Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Appleseed Fund Appleseed has no effect on the direction of Korea Closed i.e., Korea Closed and Appleseed Fund go up and down completely randomly.
Pair Corralation between Korea Closed and Appleseed Fund
Allowing for the 90-day total investment horizon Korea Closed is expected to under-perform the Appleseed Fund. In addition to that, Korea Closed is 1.86 times more volatile than Appleseed Fund Appleseed. It trades about -0.13 of its total potential returns per unit of risk. Appleseed Fund Appleseed is currently generating about 0.27 per unit of volatility. If you would invest 1,486 in Appleseed Fund Appleseed on September 1, 2024 and sell it today you would earn a total of 70.00 from holding Appleseed Fund Appleseed or generate 4.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Korea Closed vs. Appleseed Fund Appleseed
Performance |
| Timeline |
| Korea Closed |
| Appleseed Fund Appleseed |
Korea Closed and Appleseed Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Korea Closed and Appleseed Fund
The main advantage of trading using opposite Korea Closed and Appleseed Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Korea Closed position performs unexpectedly, Appleseed Fund 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 Appleseed Fund will offset losses from the drop in Appleseed Fund's long position.| Korea Closed vs. Mexico Equity And | Korea Closed vs. Western Asset Global | Korea Closed vs. New Germany Closed | Korea Closed vs. MFS Charter Income |
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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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