Correlation Between Payden Us and Total Return
Can any of the company-specific risk be diversified away by investing in both Payden Us and Total Return 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 Payden Us and Total Return into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Payden Government Fund and Total Return Fund, you can compare the effects of market volatilities on Payden Us and Total Return 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 Payden Us with a short position of Total Return. Check out your portfolio center. Please also check ongoing floating volatility patterns of Payden Us and Total Return.
Diversification Opportunities for Payden Us and Total Return
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Payden and Total is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Payden Government Fund and Total Return Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Total Return and Payden Us 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 Payden Government Fund are associated (or correlated) with Total Return. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Total Return has no effect on the direction of Payden Us i.e., Payden Us and Total Return go up and down completely randomly.
Pair Corralation between Payden Us and Total Return
Assuming the 90 days horizon Payden Government Fund is expected to generate 0.43 times more return on investment than Total Return. However, Payden Government Fund is 2.34 times less risky than Total Return. It trades about 0.06 of its potential returns per unit of risk. Total Return Fund is currently generating about -0.02 per unit of risk. If you would invest 930.00 in Payden Government Fund on October 26, 2024 and sell it today you would earn a total of 5.00 from holding Payden Government Fund or generate 0.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Payden Government Fund vs. Total Return Fund
Performance |
| Timeline |
| Payden Government |
| Total Return |
Payden Us and Total Return Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Payden Us and Total Return
The main advantage of trading using opposite Payden Us and Total Return positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Payden Us position performs unexpectedly, Total Return 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 Total Return will offset losses from the drop in Total Return's long position.| Payden Us vs. Fidelity Advisor Health | Payden Us vs. The Gabelli Healthcare | Payden Us vs. Allianzgi Health Sciences | Payden Us vs. Health Care Fund |
| Total Return vs. Energy Services Fund | Total Return vs. Pimco Energy Tactical | Total Return vs. Salient Mlp Energy | Total Return vs. World Energy Fund |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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