Correlation Between Arrow Managed and Aristotle Funds
Can any of the company-specific risk be diversified away by investing in both Arrow Managed and Aristotle Funds 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 Arrow Managed and Aristotle Funds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Arrow Managed Futures and Aristotle Funds Series, you can compare the effects of market volatilities on Arrow Managed and Aristotle Funds 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 Arrow Managed with a short position of Aristotle Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arrow Managed and Aristotle Funds.
Diversification Opportunities for Arrow Managed and Aristotle Funds
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Arrow and Aristotle is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Arrow Managed Futures and Aristotle Funds Series in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aristotle Funds Series and Arrow 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 Arrow Managed Futures are associated (or correlated) with Aristotle Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aristotle Funds Series has no effect on the direction of Arrow Managed i.e., Arrow Managed and Aristotle Funds go up and down completely randomly.
Pair Corralation between Arrow Managed and Aristotle Funds
Assuming the 90 days horizon Arrow Managed Futures is expected to generate 1.38 times more return on investment than Aristotle Funds. However, Arrow Managed is 1.38 times more volatile than Aristotle Funds Series. It trades about 0.26 of its potential returns per unit of risk. Aristotle Funds Series is currently generating about -0.01 per unit of risk. If you would invest 542.00 in Arrow Managed Futures on September 12, 2024 and sell it today you would earn a total of 33.00 from holding Arrow Managed Futures or generate 6.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Arrow Managed Futures vs. Aristotle Funds Series
Performance |
| Timeline |
| Arrow Managed Futures |
| Aristotle Funds Series |
Arrow Managed and Aristotle Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arrow Managed and Aristotle Funds
The main advantage of trading using opposite Arrow Managed and Aristotle Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arrow Managed position performs unexpectedly, Aristotle Funds 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 Aristotle Funds will offset losses from the drop in Aristotle Funds' long position.| Arrow Managed vs. Artisan Small Cap | Arrow Managed vs. Mid Cap Growth | Arrow Managed vs. L Abbett Growth | Arrow Managed vs. Chase Growth Fund |
| Aristotle Funds vs. Qs Large Cap | Aristotle Funds vs. Rbc Microcap Value | Aristotle Funds vs. Western Asset Municipal | Aristotle Funds vs. Arrow Managed Futures |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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