Correlation Between Growth Fund and Teton Westwood
Can any of the company-specific risk be diversified away by investing in both Growth Fund and Teton Westwood 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 Fund and Teton Westwood into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Growth Fund Of and Teton Westwood Balanced, you can compare the effects of market volatilities on Growth Fund and Teton Westwood 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 Fund with a short position of Teton Westwood. Check out your portfolio center. Please also check ongoing floating volatility patterns of Growth Fund and Teton Westwood.
Diversification Opportunities for Growth Fund and Teton Westwood
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GROWTH and Teton is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Growth Fund Of and Teton Westwood Balanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Teton Westwood Balanced and Growth Fund 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 Fund Of are associated (or correlated) with Teton Westwood. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Teton Westwood Balanced has no effect on the direction of Growth Fund i.e., Growth Fund and Teton Westwood go up and down completely randomly.
Pair Corralation between Growth Fund and Teton Westwood
Assuming the 90 days horizon Growth Fund Of is expected to generate 0.7 times more return on investment than Teton Westwood. However, Growth Fund Of is 1.42 times less risky than Teton Westwood. It trades about 0.15 of its potential returns per unit of risk. Teton Westwood Balanced is currently generating about -0.1 per unit of risk. If you would invest 7,115 in Growth Fund Of on August 30, 2024 and sell it today you would earn a total of 237.00 from holding Growth Fund Of or generate 3.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Growth Fund Of vs. Teton Westwood Balanced
Performance |
| Timeline |
| Growth Fund |
| Teton Westwood Balanced |
Growth Fund and Teton Westwood Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Growth Fund and Teton Westwood
The main advantage of trading using opposite Growth Fund and Teton Westwood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Growth Fund position performs unexpectedly, Teton Westwood 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 Teton Westwood will offset losses from the drop in Teton Westwood's long position.| Growth Fund vs. Capital World Growth | Growth Fund vs. Smallcap World Fund | Growth Fund vs. Washington Mutual Investors | Growth Fund vs. Aquagold International |
| Teton Westwood vs. Ab Small Cap | Teton Westwood vs. Gmo Small Cap | Teton Westwood vs. Growth Fund Of | Teton Westwood vs. T Rowe Price |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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