Correlation Between Wilmington Funds and Growth Opportunities
Can any of the company-specific risk be diversified away by investing in both Wilmington Funds and Growth Opportunities 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 Wilmington Funds and Growth Opportunities into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wilmington Funds and Growth Opportunities Fund, you can compare the effects of market volatilities on Wilmington Funds and Growth Opportunities 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 Wilmington Funds with a short position of Growth Opportunities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wilmington Funds and Growth Opportunities.
Diversification Opportunities for Wilmington Funds and Growth Opportunities
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Wilmington and Growth is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Wilmington Funds and Growth Opportunities Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Growth Opportunities and Wilmington 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 Wilmington Funds are associated (or correlated) with Growth Opportunities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Growth Opportunities has no effect on the direction of Wilmington Funds i.e., Wilmington Funds and Growth Opportunities go up and down completely randomly.
Pair Corralation between Wilmington Funds and Growth Opportunities
If you would invest 4,929 in Growth Opportunities Fund on September 3, 2024 and sell it today you would earn a total of 321.00 from holding Growth Opportunities Fund or generate 6.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wilmington Funds vs. Growth Opportunities Fund
Performance |
| Timeline |
| Wilmington Funds |
| Growth Opportunities |
Wilmington Funds and Growth Opportunities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wilmington Funds and Growth Opportunities
The main advantage of trading using opposite Wilmington Funds and Growth Opportunities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wilmington Funds position performs unexpectedly, Growth Opportunities 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 Growth Opportunities will offset losses from the drop in Growth Opportunities' long position.| Wilmington Funds vs. Vanguard Total Stock | Wilmington Funds vs. Vanguard 500 Index | Wilmington Funds vs. Vanguard Total Stock | Wilmington Funds vs. Vanguard Total Stock |
| Growth Opportunities vs. Elfun Government Money | Growth Opportunities vs. Wilmington Funds | Growth Opportunities vs. Wt Mutual Fund | Growth Opportunities vs. Blackrock Exchange Portfolio |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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