Correlation Between Fundvantage Trust and Polen International
Can any of the company-specific risk be diversified away by investing in both Fundvantage Trust and Polen International 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 Fundvantage Trust and Polen International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fundvantage Trust and Polen International Growth, you can compare the effects of market volatilities on Fundvantage Trust and Polen International 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 Fundvantage Trust with a short position of Polen International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fundvantage Trust and Polen International.
Diversification Opportunities for Fundvantage Trust and Polen International
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fundvantage and POLEN is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Fundvantage Trust and Polen International Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Polen International and Fundvantage Trust 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 Fundvantage Trust are associated (or correlated) with Polen International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Polen International has no effect on the direction of Fundvantage Trust i.e., Fundvantage Trust and Polen International go up and down completely randomly.
Pair Corralation between Fundvantage Trust and Polen International
Assuming the 90 days horizon Fundvantage Trust is expected to generate 1.14 times less return on investment than Polen International. But when comparing it to its historical volatility, Fundvantage Trust is 4.77 times less risky than Polen International. It trades about 0.24 of its potential returns per unit of risk. Polen International Growth is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,601 in Polen International Growth on August 30, 2024 and sell it today you would earn a total of 15.00 from holding Polen International Growth or generate 0.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fundvantage Trust vs. Polen International Growth
Performance |
| Timeline |
| Fundvantage Trust |
| Polen International |
Fundvantage Trust and Polen International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fundvantage Trust and Polen International
The main advantage of trading using opposite Fundvantage Trust and Polen International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fundvantage Trust position performs unexpectedly, Polen International 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 Polen International will offset losses from the drop in Polen International's long position.| Fundvantage Trust vs. Tiaa Cref Smallmid Cap Equity | Fundvantage Trust vs. Adams Diversified Equity | Fundvantage Trust vs. The Gabelli Small | Fundvantage Trust vs. Sentinel Small Pany |
| Polen International vs. Polen Growth Fund | Polen International vs. Polen Growth Fund | Polen International vs. Polen Global Growth | Polen International vs. Polen Small |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Commodity Directory Find actively traded commodities issued by 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 |