Correlation Between Growth Fund and Praxis Growth
Can any of the company-specific risk be diversified away by investing in both Growth Fund and Praxis Growth 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 Praxis Growth 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 Praxis Growth Index, you can compare the effects of market volatilities on Growth Fund and Praxis Growth 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 Praxis Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Growth Fund and Praxis Growth.
Diversification Opportunities for Growth Fund and Praxis Growth
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Growth and Praxis is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Growth Fund Of and Praxis Growth Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Praxis Growth Index 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 Praxis Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Praxis Growth Index has no effect on the direction of Growth Fund i.e., Growth Fund and Praxis Growth go up and down completely randomly.
Pair Corralation between Growth Fund and Praxis Growth
Assuming the 90 days horizon Growth Fund Of is expected to under-perform the Praxis Growth. But the mutual fund apears to be less risky and, when comparing its historical volatility, Growth Fund Of is 1.13 times less risky than Praxis Growth. The mutual fund trades about -0.13 of its potential returns per unit of risk. The Praxis Growth Index is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 4,931 in Praxis Growth Index on November 28, 2024 and sell it today you would lose (65.00) from holding Praxis Growth Index or give up 1.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Growth Fund Of vs. Praxis Growth Index
Performance |
| Timeline |
| Growth Fund |
| Praxis Growth Index |
Growth Fund and Praxis Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Growth Fund and Praxis Growth
The main advantage of trading using opposite Growth Fund and Praxis Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Growth Fund position performs unexpectedly, Praxis Growth 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 Praxis Growth will offset losses from the drop in Praxis Growth's long position.| Growth Fund vs. Artisan Small Cap | Growth Fund vs. Vulcan Value Partners | Growth Fund vs. Ep Emerging Markets | Growth Fund vs. Astoncrosswind Small Cap |
| Praxis Growth vs. Aqr Sustainable Long Short | Praxis Growth vs. Siit Ultra Short | Praxis Growth vs. Angel Oak Ultrashort | Praxis Growth vs. Barings Active Short |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |