Correlation Between Viking Tax-free and 361 Global
Can any of the company-specific risk be diversified away by investing in both Viking Tax-free and 361 Global 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 Viking Tax-free and 361 Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Viking Tax Free Fund and 361 Global Longshort, you can compare the effects of market volatilities on Viking Tax-free and 361 Global 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 Viking Tax-free with a short position of 361 Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Viking Tax-free and 361 Global.
Diversification Opportunities for Viking Tax-free and 361 Global
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Viking and 361 is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Viking Tax Free Fund and 361 Global Longshort in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 361 Global Longshort and Viking Tax-free 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 Viking Tax Free Fund are associated (or correlated) with 361 Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 361 Global Longshort has no effect on the direction of Viking Tax-free i.e., Viking Tax-free and 361 Global go up and down completely randomly.
Pair Corralation between Viking Tax-free and 361 Global
Assuming the 90 days horizon Viking Tax-free is expected to generate 3.57 times less return on investment than 361 Global. But when comparing it to its historical volatility, Viking Tax Free Fund is 1.89 times less risky than 361 Global. It trades about 0.03 of its potential returns per unit of risk. 361 Global Longshort is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,137 in 361 Global Longshort on September 3, 2024 and sell it today you would earn a total of 140.00 from holding 361 Global Longshort or generate 12.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Viking Tax Free Fund vs. 361 Global Longshort
Performance |
| Timeline |
| Viking Tax Free |
| 361 Global Longshort |
Viking Tax-free and 361 Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Viking Tax-free and 361 Global
The main advantage of trading using opposite Viking Tax-free and 361 Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Viking Tax-free position performs unexpectedly, 361 Global 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 361 Global will offset losses from the drop in 361 Global's long position.| Viking Tax-free vs. 361 Global Longshort | Viking Tax-free vs. Ab Global Bond | Viking Tax-free vs. Legg Mason Global | Viking Tax-free vs. Siit Global Managed |
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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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