Correlation Between Pender Real and Bull Profund
Can any of the company-specific risk be diversified away by investing in both Pender Real and Bull Profund 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 Bull Profund 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 Bull Profund Investor, you can compare the effects of market volatilities on Pender Real and Bull Profund 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 Bull Profund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pender Real and Bull Profund.
Diversification Opportunities for Pender Real and Bull Profund
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Pender and Bull is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Pender Real Estate and Bull Profund Investor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bull Profund Investor 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 Bull Profund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bull Profund Investor has no effect on the direction of Pender Real i.e., Pender Real and Bull Profund go up and down completely randomly.
Pair Corralation between Pender Real and Bull Profund
Assuming the 90 days horizon Pender Real is expected to generate 2.88 times less return on investment than Bull Profund. But when comparing it to its historical volatility, Pender Real Estate is 12.51 times less risky than Bull Profund. It trades about 0.52 of its potential returns per unit of risk. Bull Profund Investor is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 5,390 in Bull Profund Investor on August 31, 2024 and sell it today you would earn a total of 2,097 from holding Bull Profund Investor or generate 38.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.73% |
| Values | Daily Returns |
Pender Real Estate vs. Bull Profund Investor
Performance |
| Timeline |
| Pender Real Estate |
| Bull Profund Investor |
Pender Real and Bull Profund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pender Real and Bull Profund
The main advantage of trading using opposite Pender Real and Bull Profund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pender Real position performs unexpectedly, Bull Profund 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 Bull Profund will offset losses from the drop in Bull Profund's long position.| Pender Real vs. Volumetric Fund Volumetric | Pender Real vs. Semiconductor Ultrasector Profund | Pender Real vs. Artisan Thematic Fund | Pender Real vs. Ab Value Fund |
| Bull Profund vs. Nasdaq 100 2x Strategy | Bull Profund vs. Nasdaq 100 2x Strategy | Bull Profund vs. Nasdaq 100 2x Strategy | Bull Profund vs. Ultra Nasdaq 100 Profunds |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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