Correlation Between Growth Fund and Trustcash Holdings
Can any of the company-specific risk be diversified away by investing in both Growth Fund and Trustcash Holdings 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 Trustcash Holdings 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 Trustcash Holdings, you can compare the effects of market volatilities on Growth Fund and Trustcash Holdings 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 Trustcash Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Growth Fund and Trustcash Holdings.
Diversification Opportunities for Growth Fund and Trustcash Holdings
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Growth and Trustcash is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Growth Fund Of and Trustcash Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trustcash Holdings 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 Trustcash Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trustcash Holdings has no effect on the direction of Growth Fund i.e., Growth Fund and Trustcash Holdings go up and down completely randomly.
Pair Corralation between Growth Fund and Trustcash Holdings
Assuming the 90 days horizon Growth Fund is expected to generate 253.46 times less return on investment than Trustcash Holdings. But when comparing it to its historical volatility, Growth Fund Of is 218.33 times less risky than Trustcash Holdings. It trades about 0.16 of its potential returns per unit of risk. Trustcash Holdings is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 0.01 in Trustcash Holdings on August 24, 2024 and sell it today you would lose (0.01) from holding Trustcash Holdings or give up 90.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Growth Fund Of vs. Trustcash Holdings
Performance |
| Timeline |
| Growth Fund |
| Trustcash Holdings |
Growth Fund and Trustcash Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Growth Fund and Trustcash Holdings
The main advantage of trading using opposite Growth Fund and Trustcash Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Growth Fund position performs unexpectedly, Trustcash Holdings 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 Trustcash Holdings will offset losses from the drop in Trustcash Holdings' 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 |
| Trustcash Holdings vs. Small Cap Core | Trustcash Holdings vs. Freedom Holding Corp | Trustcash Holdings vs. Gfl Environmental Holdings | Trustcash Holdings 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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