Correlation Between Alphacentric Municipal and Auer Growth
Can any of the company-specific risk be diversified away by investing in both Alphacentric Municipal and Auer Growth 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 Alphacentric Municipal and Auer Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alphacentric Municipal Opportunities and Auer Growth Fund, you can compare the effects of market volatilities on Alphacentric Municipal and Auer Growth 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 Alphacentric Municipal with a short position of Auer Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alphacentric Municipal and Auer Growth.
Diversification Opportunities for Alphacentric Municipal and Auer Growth
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Alphacentric and Auer is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Alphacentric Municipal Opportu and Auer Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Auer Growth Fund and Alphacentric Municipal 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 Alphacentric Municipal Opportunities are associated (or correlated) with Auer Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Auer Growth Fund has no effect on the direction of Alphacentric Municipal i.e., Alphacentric Municipal and Auer Growth go up and down completely randomly.
Pair Corralation between Alphacentric Municipal and Auer Growth
If you would invest 1,651 in Auer Growth Fund on September 3, 2024 and sell it today you would earn a total of 117.00 from holding Auer Growth Fund or generate 7.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 0.8% |
| Values | Daily Returns |
Alphacentric Municipal Opportu vs. Auer Growth Fund
Performance |
| Timeline |
| Alphacentric Municipal |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Auer Growth Fund |
Alphacentric Municipal and Auer Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alphacentric Municipal and Auer Growth
The main advantage of trading using opposite Alphacentric Municipal and Auer Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alphacentric Municipal position performs unexpectedly, Auer Growth 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 Auer Growth will offset losses from the drop in Auer Growth's long position.| Alphacentric Municipal vs. Small Cap Stock | Alphacentric Municipal vs. Nasdaq 100 Fund Class | Alphacentric Municipal vs. Omni Small Cap Value | Alphacentric Municipal vs. Artisan Thematic Fund |
| Auer Growth vs. Lebenthal Lisanti Small | Auer Growth vs. Hodges Small Cap | Auer Growth vs. Schwartz Value Focused | Auer Growth vs. Oberweis Small Cap Opportunities |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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