Correlation Between Mairs Power and International Fund
Can any of the company-specific risk be diversified away by investing in both Mairs Power and International 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 Mairs Power and International Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mairs Power Growth and International Fund International, you can compare the effects of market volatilities on Mairs Power and International 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 Mairs Power with a short position of International Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mairs Power and International Fund.
Diversification Opportunities for Mairs Power and International Fund
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Mairs and International is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Mairs Power Growth and International Fund Internation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Fund and Mairs Power 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 Mairs Power Growth are associated (or correlated) with International Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Fund has no effect on the direction of Mairs Power i.e., Mairs Power and International Fund go up and down completely randomly.
Pair Corralation between Mairs Power and International Fund
Assuming the 90 days horizon Mairs Power Growth is expected to generate 1.29 times more return on investment than International Fund. However, Mairs Power is 1.29 times more volatile than International Fund International. It trades about 0.1 of its potential returns per unit of risk. International Fund International is currently generating about 0.07 per unit of risk. If you would invest 13,774 in Mairs Power Growth on August 26, 2024 and sell it today you would earn a total of 4,244 from holding Mairs Power Growth or generate 30.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mairs Power Growth vs. International Fund Internation
Performance |
| Timeline |
| Mairs Power Growth |
| International Fund |
Mairs Power and International Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mairs Power and International Fund
The main advantage of trading using opposite Mairs Power and International Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mairs Power position performs unexpectedly, International 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 International Fund will offset losses from the drop in International Fund's long position.| Mairs Power vs. Meridian Trarian Fund | Mairs Power vs. Mairs Power Balanced | Mairs Power vs. Clipper Fund Inc | Mairs Power vs. Meridian Growth Fund |
| International Fund vs. Pimco Moditiesplus Strategy | International Fund vs. The Brown Capital | International Fund vs. Goldman Sachs International | International Fund vs. Cohen Steers Real |
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.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |