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 Tax, 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
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Arrow and First is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Arrow Managed Futures and First Investors Tax in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Investors Tax 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 Tax 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
Assuming the 90 days horizon Arrow Managed Futures is expected to under-perform the First Investors. In addition to that, Arrow Managed is 4.88 times more volatile than First Investors Tax. It trades about -0.03 of its total potential returns per unit of risk. First Investors Tax is currently generating about 0.11 per unit of volatility. If you would invest 1,205 in First Investors Tax on September 3, 2024 and sell it today you would earn a total of 48.00 from holding First Investors Tax or generate 3.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Arrow Managed Futures vs. First Investors Tax
Performance |
| Timeline |
| Arrow Managed Futures |
| First Investors Tax |
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. Black Oak Emerging | First Investors vs. T Rowe Price | First Investors vs. Rbc Emerging Markets | First Investors 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |