Correlation Between Issachar Fund and Payden Emerging
Can any of the company-specific risk be diversified away by investing in both Issachar Fund and Payden Emerging 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 Issachar Fund and Payden Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Issachar Fund Class and Payden Emerging Markets, you can compare the effects of market volatilities on Issachar Fund and Payden Emerging 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 Issachar Fund with a short position of Payden Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Issachar Fund and Payden Emerging.
Diversification Opportunities for Issachar Fund and Payden Emerging
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Issachar and Payden is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Issachar Fund Class and Payden Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Payden Emerging Markets and Issachar Fund 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 Issachar Fund Class are associated (or correlated) with Payden Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Payden Emerging Markets has no effect on the direction of Issachar Fund i.e., Issachar Fund and Payden Emerging go up and down completely randomly.
Pair Corralation between Issachar Fund and Payden Emerging
Assuming the 90 days horizon Issachar Fund is expected to generate 1.57 times less return on investment than Payden Emerging. In addition to that, Issachar Fund is 2.12 times more volatile than Payden Emerging Markets. It trades about 0.04 of its total potential returns per unit of risk. Payden Emerging Markets is currently generating about 0.13 per unit of volatility. If you would invest 900.00 in Payden Emerging Markets on September 4, 2024 and sell it today you would earn a total of 163.00 from holding Payden Emerging Markets or generate 18.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.73% |
| Values | Daily Returns |
Issachar Fund Class vs. Payden Emerging Markets
Performance |
| Timeline |
| Issachar Fund Class |
| Payden Emerging Markets |
Issachar Fund and Payden Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Issachar Fund and Payden Emerging
The main advantage of trading using opposite Issachar Fund and Payden Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Issachar Fund position performs unexpectedly, Payden Emerging 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 Payden Emerging will offset losses from the drop in Payden Emerging's long position.| Issachar Fund vs. Oppenheimer International Diversified | Issachar Fund vs. Massmutual Premier Diversified | Issachar Fund vs. Massmutual Select Diversified | Issachar Fund vs. Adams Diversified Equity |
| Payden Emerging vs. Barings Active Short | Payden Emerging vs. Goldman Sachs Short | Payden Emerging vs. Limited Term Tax | Payden Emerging vs. Astor Longshort 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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