Correlation Between Europacific Growth and Elbit Med
Can any of the company-specific risk be diversified away by investing in both Europacific Growth and Elbit Med 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 Europacific Growth and Elbit Med into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Europacific Growth Fund and Elbit Med Tech, you can compare the effects of market volatilities on Europacific Growth and Elbit Med 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 Europacific Growth with a short position of Elbit Med. Check out your portfolio center. Please also check ongoing floating volatility patterns of Europacific Growth and Elbit Med.
Diversification Opportunities for Europacific Growth and Elbit Med
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Europacific and Elbit is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Europacific Growth Fund and Elbit Med Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elbit Med Tech and Europacific 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 Europacific Growth Fund are associated (or correlated) with Elbit Med. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elbit Med Tech has no effect on the direction of Europacific Growth i.e., Europacific Growth and Elbit Med go up and down completely randomly.
Pair Corralation between Europacific Growth and Elbit Med
Assuming the 90 days horizon Europacific Growth Fund is expected to generate 0.06 times more return on investment than Elbit Med. However, Europacific Growth Fund is 16.24 times less risky than Elbit Med. It trades about -0.35 of its potential returns per unit of risk. Elbit Med Tech is currently generating about -0.28 per unit of risk. If you would invest 5,888 in Europacific Growth Fund on January 20, 2024 and sell it today you would lose (233.00) from holding Europacific Growth Fund or give up 3.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 86.36% |
| Values | Daily Returns |
Europacific Growth Fund vs. Elbit Med Tech
Performance |
| Timeline |
| Europacific Growth |
| Elbit Med Tech |
Europacific Growth and Elbit Med Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Europacific Growth and Elbit Med
The main advantage of trading using opposite Europacific Growth and Elbit Med positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Europacific Growth position performs unexpectedly, Elbit Med 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 Elbit Med will offset losses from the drop in Elbit Med's long position.| Europacific Growth vs. Growth Fund Of | Europacific Growth vs. Vanguard Institutional Index | Europacific Growth vs. Vanguard Mid Cap Index | Europacific Growth vs. Washington Mutual Investors |
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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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