Correlation Between Growth Opportunities and Payden Absolute
Can any of the company-specific risk be diversified away by investing in both Growth Opportunities and Payden Absolute 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 Opportunities and Payden Absolute into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Growth Opportunities Fund and Payden Absolute Return, you can compare the effects of market volatilities on Growth Opportunities and Payden Absolute 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 Opportunities with a short position of Payden Absolute. Check out your portfolio center. Please also check ongoing floating volatility patterns of Growth Opportunities and Payden Absolute.
Diversification Opportunities for Growth Opportunities and Payden Absolute
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GROWTH and Payden is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Growth Opportunities Fund and Payden Absolute Return in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Payden Absolute Return and Growth Opportunities 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 Opportunities Fund are associated (or correlated) with Payden Absolute. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Payden Absolute Return has no effect on the direction of Growth Opportunities i.e., Growth Opportunities and Payden Absolute go up and down completely randomly.
Pair Corralation between Growth Opportunities and Payden Absolute
If you would invest 5,471 in Growth Opportunities Fund on September 1, 2024 and sell it today you would earn a total of 385.00 from holding Growth Opportunities Fund or generate 7.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Growth Opportunities Fund vs. Payden Absolute Return
Performance |
| Timeline |
| Growth Opportunities |
| Payden Absolute Return |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Growth Opportunities and Payden Absolute Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Growth Opportunities and Payden Absolute
The main advantage of trading using opposite Growth Opportunities and Payden Absolute positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Growth Opportunities position performs unexpectedly, Payden Absolute 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 Payden Absolute will offset losses from the drop in Payden Absolute's long position.| Growth Opportunities vs. Virtus Real Estate | Growth Opportunities vs. Prudential Real Estate | Growth Opportunities vs. Deutsche Real Estate | Growth Opportunities vs. Goldman Sachs Real |
| Payden Absolute vs. Growth Opportunities Fund | Payden Absolute vs. Small Midcap Dividend Income | Payden Absolute vs. Nationwide Growth Fund | Payden Absolute vs. Legg Mason Partners |
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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