Correlation Between Quaker Investment and Listed Funds
Can any of the company-specific risk be diversified away by investing in both Quaker Investment and Listed 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 Quaker Investment and Listed Funds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Quaker Investment Trust and Listed Funds Trust, you can compare the effects of market volatilities on Quaker Investment and Listed 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 Quaker Investment with a short position of Listed Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Quaker Investment and Listed Funds.
Diversification Opportunities for Quaker Investment and Listed Funds
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Quaker and Listed is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Quaker Investment Trust and Listed Funds Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Listed Funds Trust and Quaker Investment 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 Quaker Investment Trust are associated (or correlated) with Listed Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Listed Funds Trust has no effect on the direction of Quaker Investment i.e., Quaker Investment and Listed Funds go up and down completely randomly.
Pair Corralation between Quaker Investment and Listed Funds
Given the investment horizon of 90 days Quaker Investment Trust is expected to generate 1.31 times more return on investment than Listed Funds. However, Quaker Investment is 1.31 times more volatile than Listed Funds Trust. It trades about 0.11 of its potential returns per unit of risk. Listed Funds Trust is currently generating about 0.08 per unit of risk. If you would invest 1,709 in Quaker Investment Trust on August 28, 2024 and sell it today you would earn a total of 13.00 from holding Quaker Investment Trust or generate 0.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Quaker Investment Trust vs. Listed Funds Trust
Performance |
| Timeline |
| Quaker Investment Trust |
| Listed Funds Trust |
Quaker Investment and Listed Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Quaker Investment and Listed Funds
The main advantage of trading using opposite Quaker Investment and Listed Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Quaker Investment position performs unexpectedly, Listed 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 Listed Funds will offset losses from the drop in Listed Funds' long position.| Quaker Investment vs. Listed Funds Trust | Quaker Investment vs. ClearShares Piton Intermediate | Quaker Investment vs. John Hancock Exchange Traded | Quaker Investment vs. SSGA Active Trust |
| Listed Funds vs. Dimensional ETF Trust | Listed Funds vs. Dimensional ETF Trust | Listed Funds vs. Dimensional Core Equity | Listed Funds vs. Dimensional ETF Trust |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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