Correlation Between Growth Opportunities and Cref Money
Can any of the company-specific risk be diversified away by investing in both Growth Opportunities and Cref Money 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 Cref Money 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 Cref Money Market, you can compare the effects of market volatilities on Growth Opportunities and Cref Money 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 Cref Money. Check out your portfolio center. Please also check ongoing floating volatility patterns of Growth Opportunities and Cref Money.
Diversification Opportunities for Growth Opportunities and Cref Money
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between GROWTH and Cref is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Growth Opportunities Fund and Cref Money Market in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cref Money Market 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 Cref Money. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cref Money Market has no effect on the direction of Growth Opportunities i.e., Growth Opportunities and Cref Money go up and down completely randomly.
Pair Corralation between Growth Opportunities and Cref Money
Assuming the 90 days horizon Growth Opportunities Fund is expected to generate 56.06 times more return on investment than Cref Money. However, Growth Opportunities is 56.06 times more volatile than Cref Money Market. It trades about 0.3 of its potential returns per unit of risk. Cref Money Market is currently generating about 1.02 per unit of risk. If you would invest 5,516 in Growth Opportunities Fund on September 2, 2024 and sell it today you would earn a total of 340.00 from holding Growth Opportunities Fund or generate 6.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Growth Opportunities Fund vs. Cref Money Market
Performance |
| Timeline |
| Growth Opportunities |
| Cref Money Market |
Growth Opportunities and Cref Money Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Growth Opportunities and Cref Money
The main advantage of trading using opposite Growth Opportunities and Cref Money positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Growth Opportunities position performs unexpectedly, Cref Money 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 Cref Money will offset losses from the drop in Cref Money's long position.| Growth Opportunities vs. Mid Cap Value Profund | Growth Opportunities vs. Mutual Of America | Growth Opportunities vs. American Century Etf | Growth Opportunities vs. Heartland Value Plus |
| Cref Money vs. Tfa Alphagen Growth | Cref Money vs. L Abbett Growth | Cref Money vs. Nationwide Growth Fund | Cref Money vs. Growth Opportunities Fund |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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