Correlation Between Arrow Managed and First Investors
Can any of the company-specific risk be diversified away by investing in both Arrow Managed and First Investors 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 First Investors 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 First Investors Total, you can compare the effects of market volatilities on Arrow Managed and First Investors 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 First Investors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arrow Managed and First Investors.
Diversification Opportunities for Arrow Managed and First Investors
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Arrow and First is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Arrow Managed Futures and First Investors Total in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Investors Total 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 First Investors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Investors Total has no effect on the direction of Arrow Managed i.e., Arrow Managed and First Investors go up and down completely randomly.
Pair Corralation between Arrow Managed and First Investors
If you would invest 524.00 in Arrow Managed Futures on September 3, 2024 and sell it today you would earn a total of 34.00 from holding Arrow Managed Futures or generate 6.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 5.0% |
| Values | Daily Returns |
Arrow Managed Futures vs. First Investors Total
Performance |
| Timeline |
| Arrow Managed Futures |
| First Investors Total |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Arrow Managed and First Investors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arrow Managed and First Investors
The main advantage of trading using opposite Arrow Managed and First Investors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arrow Managed position performs unexpectedly, First Investors 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 First Investors will offset losses from the drop in First Investors' long position.| Arrow Managed vs. Transamerica Funds | Arrow Managed vs. T Rowe Price | Arrow Managed vs. Cs 607 Tax | Arrow Managed vs. Intermediate Term Tax Free Bond |
| First Investors vs. California High Yield Municipal | First Investors vs. Morningstar Municipal Bond | First Investors vs. Vanguard California Long Term | First Investors vs. Nuveen Minnesota Municipal |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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