Correlation Between Polen Growth and Polen Us
Can any of the company-specific risk be diversified away by investing in both Polen Growth and Polen Us 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 Us 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 Small Pany, you can compare the effects of market volatilities on Polen Growth and Polen Us 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 Us. Check out your portfolio center. Please also check ongoing floating volatility patterns of Polen Growth and Polen Us.
Diversification Opportunities for Polen Growth and Polen Us
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Polen and Polen is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Polen Growth Fund and Polen Small Pany in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Polen Small Pany 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 Us. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Polen Small Pany has no effect on the direction of Polen Growth i.e., Polen Growth and Polen Us go up and down completely randomly.
Pair Corralation between Polen Growth and Polen Us
Assuming the 90 days horizon Polen Growth Fund is expected to generate 0.82 times more return on investment than Polen Us. However, Polen Growth Fund is 1.22 times less risky than Polen Us. It trades about 0.09 of its potential returns per unit of risk. Polen Small Pany is currently generating about 0.05 per unit of risk. If you would invest 3,020 in Polen Growth Fund on August 30, 2024 and sell it today you would earn a total of 1,803 from holding Polen Growth Fund or generate 59.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.8% |
| Values | Daily Returns |
Polen Growth Fund vs. Polen Small Pany
Performance |
| Timeline |
| Polen Growth |
| Polen Small Pany |
Polen Growth and Polen Us Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Polen Growth and Polen Us
The main advantage of trading using opposite Polen Growth and Polen Us positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Polen Growth position performs unexpectedly, Polen Us 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 Us will offset losses from the drop in Polen Us' long position.| Polen Growth vs. Polen Growth Fund | Polen Growth vs. Edgewood Growth Fund | Polen Growth vs. Akre Focus Fund | Polen Growth vs. Brown Advisory Sustainable |
| Polen Us vs. Dreyfus Natural Resources | Polen Us vs. Guinness Atkinson Alternative | Polen Us vs. Victory Global Natural | Polen Us vs. Clearbridge Energy Mlp |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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