Correlation Between Growth Fund and Ingersoll Rand
Can any of the company-specific risk be diversified away by investing in both Growth Fund and Ingersoll Rand 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 Ingersoll Rand 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 Ingersoll Rand, you can compare the effects of market volatilities on Growth Fund and Ingersoll Rand 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 Ingersoll Rand. Check out your portfolio center. Please also check ongoing floating volatility patterns of Growth Fund and Ingersoll Rand.
Diversification Opportunities for Growth Fund and Ingersoll Rand
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Growth and Ingersoll is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Growth Fund Of and Ingersoll Rand in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ingersoll Rand 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 Ingersoll Rand. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ingersoll Rand has no effect on the direction of Growth Fund i.e., Growth Fund and Ingersoll Rand go up and down completely randomly.
Pair Corralation between Growth Fund and Ingersoll Rand
Assuming the 90 days horizon Growth Fund is expected to generate 1.34 times less return on investment than Ingersoll Rand. But when comparing it to its historical volatility, Growth Fund Of is 1.64 times less risky than Ingersoll Rand. It trades about 0.11 of its potential returns per unit of risk. Ingersoll Rand is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 5,443 in Ingersoll Rand on August 23, 2024 and sell it today you would earn a total of 4,861 from holding Ingersoll Rand or generate 89.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Growth Fund Of vs. Ingersoll Rand
Performance |
| Timeline |
| Growth Fund |
| Ingersoll Rand |
Growth Fund and Ingersoll Rand Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Growth Fund and Ingersoll Rand
The main advantage of trading using opposite Growth Fund and Ingersoll Rand positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Growth Fund position performs unexpectedly, Ingersoll Rand 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 Ingersoll Rand will offset losses from the drop in Ingersoll Rand's long position.| Growth Fund vs. Europacific Growth Fund | Growth Fund vs. Washington Mutual Investors | Growth Fund vs. ABIVAX Socit Anonyme | Growth Fund vs. SCOR PK |
| Ingersoll Rand vs. Small Cap Core | Ingersoll Rand vs. Freedom Holding Corp | Ingersoll Rand vs. Gfl Environmental Holdings | Ingersoll Rand vs. Growth Fund Of |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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