Correlation Between Growth Fund and Equity One

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Can any of the company-specific risk be diversified away by investing in both Growth Fund and Equity One 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 Fund and Equity One into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Growth Fund Of and Equity One, you can compare the effects of market volatilities on Growth Fund and Equity One 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 Fund with a short position of Equity One. Check out your portfolio center. Please also check ongoing floating volatility patterns of Growth Fund and Equity One.

Diversification Opportunities for Growth Fund and Equity One

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Growth and Equity is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GROWTH FUND OF and Equity One in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Equity One and Growth Fund 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 Fund Of are associated (or correlated) with Equity One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Equity One has no effect on the direction of Growth Fund i.e., Growth Fund and Equity One go up and down completely randomly.

Pair Corralation between Growth Fund and Equity One

If you would invest  6,609  in Growth Fund Of on December 29, 2023 and sell it today you would earn a total of  245.00  from holding Growth Fund Of or generate 3.71% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

GROWTH FUND OF  vs.  Equity One

 Performance 
       Timeline  
Growth Fund 

Risk-Adjusted Performance

17 of 100

 
Low
 
High
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Growth Fund Of are ranked lower than 17 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental drivers, Growth Fund may actually be approaching a critical reversion point that can send shares even higher in April 2024.
Equity One 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days Equity One has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Equity One is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Growth Fund and Equity One Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Growth Fund and Equity One

The main advantage of trading using opposite Growth Fund and Equity One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Growth Fund position performs unexpectedly, Equity One 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 Equity One will offset losses from the drop in Equity One's long position.
The idea behind Growth Fund Of and Equity One pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.

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