Correlation Between Growth Strategy and Boston Partners
Can any of the company-specific risk be diversified away by investing in both Growth Strategy and Boston Partners 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 Growth Strategy and Boston Partners into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Growth Strategy Fund and Boston Partners Emerging, you can compare the effects of market volatilities on Growth Strategy and Boston Partners 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 Growth Strategy with a short position of Boston Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of Growth Strategy and Boston Partners.
Diversification Opportunities for Growth Strategy and Boston Partners
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GROWTH and Boston is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Growth Strategy Fund and Boston Partners Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boston Partners Emerging and Growth Strategy 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 Growth Strategy Fund are associated (or correlated) with Boston Partners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boston Partners Emerging has no effect on the direction of Growth Strategy i.e., Growth Strategy and Boston Partners go up and down completely randomly.
Pair Corralation between Growth Strategy and Boston Partners
If you would invest 1,167 in Growth Strategy Fund on September 4, 2024 and sell it today you would earn a total of 41.00 from holding Growth Strategy Fund or generate 3.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Growth Strategy Fund vs. Boston Partners Emerging
Performance |
| Timeline |
| Growth Strategy |
| Boston Partners Emerging |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Growth Strategy and Boston Partners Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Growth Strategy and Boston Partners
The main advantage of trading using opposite Growth Strategy and Boston Partners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Growth Strategy position performs unexpectedly, Boston Partners 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 Boston Partners will offset losses from the drop in Boston Partners' long position.| Growth Strategy vs. International Developed Markets | Growth Strategy vs. Global Real Estate | Growth Strategy vs. Global Real Estate | Growth Strategy vs. Global Real Estate |
| Boston Partners vs. Goldman Sachs Short | Boston Partners vs. James Balanced Golden | Boston Partners vs. International Investors Gold | Boston Partners vs. Goldman Sachs Clean |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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