Correlation Between Pender Real and Amana Growth
Can any of the company-specific risk be diversified away by investing in both Pender Real and Amana 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 Pender Real and Amana Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pender Real Estate and Amana Growth Fund, you can compare the effects of market volatilities on Pender Real and Amana 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 Pender Real with a short position of Amana Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pender Real and Amana Growth.
Diversification Opportunities for Pender Real and Amana Growth
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Pender and Amana is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Pender Real Estate and Amana Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amana Growth and Pender Real 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 Pender Real Estate are associated (or correlated) with Amana Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amana Growth has no effect on the direction of Pender Real i.e., Pender Real and Amana Growth go up and down completely randomly.
Pair Corralation between Pender Real and Amana Growth
Assuming the 90 days horizon Pender Real Estate is expected to generate 0.07 times more return on investment than Amana Growth. However, Pender Real Estate is 14.53 times less risky than Amana Growth. It trades about 0.56 of its potential returns per unit of risk. Amana Growth Fund is currently generating about 0.04 per unit of risk. If you would invest 1,002 in Pender Real Estate on October 25, 2024 and sell it today you would earn a total of 6.00 from holding Pender Real Estate or generate 0.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pender Real Estate vs. Amana Growth Fund
Performance |
| Timeline |
| Pender Real Estate |
| Amana Growth |
Pender Real and Amana Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pender Real and Amana Growth
The main advantage of trading using opposite Pender Real and Amana Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pender Real position performs unexpectedly, Amana 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 Amana Growth will offset losses from the drop in Amana Growth's long position.| Pender Real vs. Fidelity Advisor Gold | Pender Real vs. Goldman Sachs Strategic | Pender Real vs. Vy Goldman Sachs | Pender Real vs. Precious Metals And |
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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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