Correlation Between Capital Growth and Global Managed
Can any of the company-specific risk be diversified away by investing in both Capital Growth and Global Managed 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 Capital Growth and Global Managed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capital Growth Fund and Global Managed Volatility, you can compare the effects of market volatilities on Capital Growth and Global Managed 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 Capital Growth with a short position of Global Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capital Growth and Global Managed.
Diversification Opportunities for Capital Growth and Global Managed
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Capital and Global is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Capital Growth Fund and Global Managed Volatility in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Managed Volatility and Capital Growth 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 Capital Growth Fund are associated (or correlated) with Global Managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Managed Volatility has no effect on the direction of Capital Growth i.e., Capital Growth and Global Managed go up and down completely randomly.
Pair Corralation between Capital Growth and Global Managed
Assuming the 90 days horizon Capital Growth Fund is expected to generate 1.13 times more return on investment than Global Managed. However, Capital Growth is 1.13 times more volatile than Global Managed Volatility. It trades about 0.02 of its potential returns per unit of risk. Global Managed Volatility is currently generating about 0.0 per unit of risk. If you would invest 1,459 in Capital Growth Fund on August 25, 2024 and sell it today you would earn a total of 7.00 from holding Capital Growth Fund or generate 0.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Capital Growth Fund vs. Global Managed Volatility
Performance |
| Timeline |
| Capital Growth |
| Global Managed Volatility |
Capital Growth and Global Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capital Growth and Global Managed
The main advantage of trading using opposite Capital Growth and Global Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capital Growth position performs unexpectedly, Global Managed 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 Global Managed will offset losses from the drop in Global Managed's long position.| Capital Growth vs. Alpsalerian Energy Infrastructure | Capital Growth vs. Icon Natural Resources | Capital Growth vs. Firsthand Alternative Energy | Capital Growth vs. Tortoise Energy Independence |
| Global Managed vs. T Rowe Price | Global Managed vs. Maryland Tax Free Bond | Global Managed vs. Mirova Global Green | Global Managed vs. Gmo Emerging Country |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |