Correlation Between Rmb Japan and Rmb Fund
Can any of the company-specific risk be diversified away by investing in both Rmb Japan and Rmb Fund 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 Rmb Japan and Rmb Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rmb Japan Fund and Rmb Fund I, you can compare the effects of market volatilities on Rmb Japan and Rmb Fund 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 Rmb Japan with a short position of Rmb Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rmb Japan and Rmb Fund.
Diversification Opportunities for Rmb Japan and Rmb Fund
Very good diversification
The 3 months correlation between Rmb and RMB is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Rmb Japan Fund and Rmb Fund I in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rmb Fund I and Rmb Japan 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 Rmb Japan Fund are associated (or correlated) with Rmb Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rmb Fund I has no effect on the direction of Rmb Japan i.e., Rmb Japan and Rmb Fund go up and down completely randomly.
Pair Corralation between Rmb Japan and Rmb Fund
Assuming the 90 days horizon Rmb Japan Fund is expected to under-perform the Rmb Fund. In addition to that, Rmb Japan is 1.95 times more volatile than Rmb Fund I. It trades about -0.02 of its total potential returns per unit of risk. Rmb Fund I is currently generating about 0.1 per unit of volatility. If you would invest 3,499 in Rmb Fund I on August 29, 2024 and sell it today you would earn a total of 334.00 from holding Rmb Fund I or generate 9.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rmb Japan Fund vs. Rmb Fund I
Performance |
| Timeline |
| Rmb Japan Fund |
| Rmb Fund I |
Rmb Japan and Rmb Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rmb Japan and Rmb Fund
The main advantage of trading using opposite Rmb Japan and Rmb Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rmb Japan position performs unexpectedly, Rmb Fund 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 Rmb Fund will offset losses from the drop in Rmb Fund's long position.| Rmb Japan vs. Artisan High Income | Rmb Japan vs. Tiaa Cref High Yield Fund | Rmb Japan vs. Calvert High Yield | Rmb Japan vs. Blackrock High Yield |
| Rmb Fund vs. Growth Fund Of | Rmb Fund vs. HUMANA INC | Rmb Fund vs. Aquagold International | Rmb Fund vs. Barloworld Ltd ADR |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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