Correlation Between Steward Funds and Ftufox
Can any of the company-specific risk be diversified away by investing in both Steward Funds and Ftufox 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 Steward Funds and Ftufox into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Steward Funds and Ftufox, you can compare the effects of market volatilities on Steward Funds and Ftufox 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 Steward Funds with a short position of Ftufox. Check out your portfolio center. Please also check ongoing floating volatility patterns of Steward Funds and Ftufox.
Diversification Opportunities for Steward Funds and Ftufox
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Steward and Ftufox is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Steward Funds and Ftufox in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ftufox and Steward Funds 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 Steward Funds are associated (or correlated) with Ftufox. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ftufox has no effect on the direction of Steward Funds i.e., Steward Funds and Ftufox go up and down completely randomly.
Pair Corralation between Steward Funds and Ftufox
Assuming the 90 days horizon Steward Funds is expected to generate 5.21 times more return on investment than Ftufox. However, Steward Funds is 5.21 times more volatile than Ftufox. It trades about 0.23 of its potential returns per unit of risk. Ftufox is currently generating about 0.08 per unit of risk. If you would invest 2,835 in Steward Funds on November 9, 2024 and sell it today you would earn a total of 102.00 from holding Steward Funds or generate 3.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Steward Funds vs. Ftufox
Performance |
| Timeline |
| Steward Funds |
| Ftufox |
Steward Funds and Ftufox Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Steward Funds and Ftufox
The main advantage of trading using opposite Steward Funds and Ftufox positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Steward Funds position performs unexpectedly, Ftufox 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 Ftufox will offset losses from the drop in Ftufox's long position.| Steward Funds vs. Tiaa Cref Lifestyle Servative | Steward Funds vs. Guggenheim Diversified Income | Steward Funds vs. Aqr Diversified Arbitrage | Steward Funds vs. Blackrock Conservative Prprdptfinstttnl |
| Ftufox vs. Financials Ultrasector Profund | Ftufox vs. Aig Government Money | Ftufox vs. Edward Jones Money | Ftufox vs. Gabelli Global Financial |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |