Correlation Between Pacific Funds and Brandes Small
Can any of the company-specific risk be diversified away by investing in both Pacific Funds and Brandes Small 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 Pacific Funds and Brandes Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pacific Funds Small Cap and Brandes Small Cap, you can compare the effects of market volatilities on Pacific Funds and Brandes Small 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 Pacific Funds with a short position of Brandes Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pacific Funds and Brandes Small.
Diversification Opportunities for Pacific Funds and Brandes Small
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pacific and Brandes is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Pacific Funds Small Cap and Brandes Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brandes Small Cap and Pacific Funds 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 Pacific Funds Small Cap are associated (or correlated) with Brandes Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brandes Small Cap has no effect on the direction of Pacific Funds i.e., Pacific Funds and Brandes Small go up and down completely randomly.
Pair Corralation between Pacific Funds and Brandes Small
If you would invest 1,561 in Brandes Small Cap on September 1, 2024 and sell it today you would earn a total of 207.00 from holding Brandes Small Cap or generate 13.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Pacific Funds Small Cap vs. Brandes Small Cap
Performance |
| Timeline |
| Pacific Funds Small |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Brandes Small Cap |
Pacific Funds and Brandes Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pacific Funds and Brandes Small
The main advantage of trading using opposite Pacific Funds and Brandes Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pacific Funds position performs unexpectedly, Brandes Small 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 Brandes Small will offset losses from the drop in Brandes Small's long position.| Pacific Funds vs. Gamco Global Gold | Pacific Funds vs. Precious Metals And | Pacific Funds vs. Short Precious Metals | Pacific Funds vs. Goldman Sachs Clean |
| Brandes Small vs. Brandes Small Cap | Brandes Small vs. Brandes E Plus | Brandes Small vs. Brandes E Plus | Brandes Small vs. Brandes E Plus |
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 Managers module to screen money managers from public funds and ETFs managed around the world.
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