Correlation Between Polen International and Fundvantage Trust
Can any of the company-specific risk be diversified away by investing in both Polen International 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 Polen International and Fundvantage Trust into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Polen International Growth and Fundvantage Trust , you can compare the effects of market volatilities on Polen International 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 Polen International with a short position of Fundvantage Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Polen International and Fundvantage Trust.
Diversification Opportunities for Polen International and Fundvantage Trust
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Polen and Fundvantage is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Polen International Growth and Fundvantage Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fundvantage Trust and Polen International 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 Polen International Growth 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 Polen International i.e., Polen International and Fundvantage Trust go up and down completely randomly.
Pair Corralation between Polen International and Fundvantage Trust
Assuming the 90 days horizon Polen International Growth is expected to generate 3.4 times more return on investment than Fundvantage Trust. However, Polen International is 3.4 times more volatile than Fundvantage Trust . It trades about 0.05 of its potential returns per unit of risk. Fundvantage Trust is currently generating about 0.14 per unit of risk. If you would invest 1,396 in Polen International Growth on November 9, 2024 and sell it today you would earn a total of 296.00 from holding Polen International Growth or generate 21.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Polen International Growth vs. Fundvantage Trust
Performance |
| Timeline |
| Polen International |
| Fundvantage Trust |
Polen International and Fundvantage Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Polen International and Fundvantage Trust
The main advantage of trading using opposite Polen International and Fundvantage Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Polen International 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.| Polen International vs. Polen Growth Fund | Polen International vs. Congress Mid Cap | Polen International vs. Polen Global Growth | Polen International vs. Zacks Dividend Fund |
| Fundvantage Trust vs. Morningstar Defensive Bond | Fundvantage Trust vs. Ab Global Bond | Fundvantage Trust vs. Vanguard Telecommunication Services | Fundvantage Trust vs. Federated Muni And |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |