Correlation Between Commodities Strategy and Growth Fund
Can any of the company-specific risk be diversified away by investing in both Commodities Strategy and Growth 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 Commodities Strategy and Growth Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Commodities Strategy Fund and Growth Fund Of, you can compare the effects of market volatilities on Commodities Strategy and Growth 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 Commodities Strategy with a short position of Growth Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Commodities Strategy and Growth Fund.
Diversification Opportunities for Commodities Strategy and Growth Fund
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Commodities and Growth is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Commodities Strategy Fund and Growth Fund Of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Growth Fund and Commodities Strategy 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 Commodities Strategy Fund are associated (or correlated) with Growth Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Growth Fund has no effect on the direction of Commodities Strategy i.e., Commodities Strategy and Growth Fund go up and down completely randomly.
Pair Corralation between Commodities Strategy and Growth Fund
Assuming the 90 days horizon Commodities Strategy Fund is expected to generate 143.51 times more return on investment than Growth Fund. However, Commodities Strategy is 143.51 times more volatile than Growth Fund Of. It trades about 0.28 of its potential returns per unit of risk. Growth Fund Of is currently generating about -0.13 per unit of risk. If you would invest 3,097 in Commodities Strategy Fund on November 28, 2024 and sell it today you would earn a total of 12,336 from holding Commodities Strategy Fund or generate 398.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Commodities Strategy Fund vs. Growth Fund Of
Performance |
| Timeline |
| Commodities Strategy |
| Growth Fund |
Commodities Strategy and Growth Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Commodities Strategy and Growth Fund
The main advantage of trading using opposite Commodities Strategy and Growth Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Commodities Strategy position performs unexpectedly, Growth 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 Growth Fund will offset losses from the drop in Growth Fund's long position.| Commodities Strategy vs. Basic Materials Fund | Commodities Strategy vs. Energy Services Fund | Commodities Strategy vs. Energy Fund Investor | Commodities Strategy vs. Real Estate Fund |
| Growth Fund vs. Alpine Ultra Short | Growth Fund vs. Old Westbury Municipal | Growth Fund vs. Us Government Securities | Growth Fund vs. Us Government Securities |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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