Correlation Between Pacific Funds and Fundvantage Trust
Can any of the company-specific risk be diversified away by investing in both Pacific Funds and Fundvantage Trust 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 Fundvantage Trust 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 Fundvantage Trust , you can compare the effects of market volatilities on Pacific Funds and Fundvantage Trust 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 Fundvantage Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pacific Funds and Fundvantage Trust.
Diversification Opportunities for Pacific Funds and Fundvantage Trust
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Pacific and Fundvantage is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Pacific Funds Small Cap and Fundvantage Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fundvantage Trust 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 Fundvantage Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fundvantage Trust has no effect on the direction of Pacific Funds i.e., Pacific Funds and Fundvantage Trust go up and down completely randomly.
Pair Corralation between Pacific Funds and Fundvantage Trust
Assuming the 90 days horizon Pacific Funds Small Cap is expected to under-perform the Fundvantage Trust. In addition to that, Pacific Funds is 3.71 times more volatile than Fundvantage Trust . It trades about -0.02 of its total potential returns per unit of risk. Fundvantage Trust is currently generating about 0.12 per unit of volatility. If you would invest 866.00 in Fundvantage Trust on August 24, 2024 and sell it today you would earn a total of 162.00 from holding Fundvantage Trust or generate 18.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 23.19% |
| Values | Daily Returns |
Pacific Funds Small Cap vs. Fundvantage Trust
Performance |
| Timeline |
| Pacific Funds Small |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Fundvantage Trust |
Pacific Funds and Fundvantage Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pacific Funds and Fundvantage Trust
The main advantage of trading using opposite Pacific Funds and Fundvantage Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pacific Funds position performs unexpectedly, Fundvantage Trust 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 Fundvantage Trust will offset losses from the drop in Fundvantage Trust's long position.| Pacific Funds vs. Praxis Growth Index | Pacific Funds vs. Growth Fund Of | Pacific Funds vs. Artisan Small Cap | Pacific Funds vs. Qs Growth Fund |
| Fundvantage Trust vs. Prudential High Yield | Fundvantage Trust vs. Parametric Modity Strategy | Fundvantage Trust vs. HUMANA INC | Fundvantage Trust vs. Aquagold International |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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