Correlation Between Polen Growth and Polen International
Can any of the company-specific risk be diversified away by investing in both Polen Growth and Polen International 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 Growth and Polen International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Polen Growth Fund and Polen International Growth, you can compare the effects of market volatilities on Polen Growth and Polen International 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 Growth with a short position of Polen International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Polen Growth and Polen International.
Diversification Opportunities for Polen Growth and Polen International
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Polen and Polen is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Polen Growth Fund and Polen International Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Polen International and Polen Growth 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 Growth Fund are associated (or correlated) with Polen International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Polen International has no effect on the direction of Polen Growth i.e., Polen Growth and Polen International go up and down completely randomly.
Pair Corralation between Polen Growth and Polen International
Assuming the 90 days horizon Polen Growth Fund is expected to under-perform the Polen International. But the mutual fund apears to be less risky and, when comparing its historical volatility, Polen Growth Fund is 1.18 times less risky than Polen International. The mutual fund trades about -0.11 of its potential returns per unit of risk. The Polen International Growth is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,622 in Polen International Growth on November 28, 2024 and sell it today you would earn a total of 28.00 from holding Polen International Growth or generate 1.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Polen Growth Fund vs. Polen International Growth
Performance |
| Timeline |
| Polen Growth |
| Polen International |
Polen Growth and Polen International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Polen Growth and Polen International
The main advantage of trading using opposite Polen Growth and Polen International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Polen Growth position performs unexpectedly, Polen International 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 Polen International will offset losses from the drop in Polen International's long position.| Polen Growth vs. Congress Mid Cap | Polen Growth vs. Wcm Focused International | Polen Growth vs. Polen Growth Fund | Polen Growth vs. Polen International Growth |
| Polen International vs. Polen Growth Fund | Polen International vs. Polen Growth Fund | Polen International vs. Polen Global Growth | Polen International vs. Polen Small |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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