Correlation Between LO Funds and Immofonds
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By analyzing existing cross correlation between LO Funds Swiss and Immofonds, you can compare the effects of market volatilities on LO Funds and Immofonds 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 LO Funds with a short position of Immofonds. Check out your portfolio center. Please also check ongoing floating volatility patterns of LO Funds and Immofonds.
Diversification Opportunities for LO Funds and Immofonds
Pay attention - limited upside
The 3 months correlation between 0P00001R8Q and Immofonds is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding LO Funds Swiss and Immofonds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immofonds and LO 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 LO Funds Swiss are associated (or correlated) with Immofonds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immofonds has no effect on the direction of LO Funds i.e., LO Funds and Immofonds go up and down completely randomly.
Pair Corralation between LO Funds and Immofonds
Assuming the 90 days trading horizon LO Funds Swiss is expected to under-perform the Immofonds. But the fund apears to be less risky and, when comparing its historical volatility, LO Funds Swiss is 1.29 times less risky than Immofonds. The fund trades about -0.18 of its potential returns per unit of risk. The Immofonds is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 57,000 in Immofonds on September 26, 2024 and sell it today you would earn a total of 2,200 from holding Immofonds or generate 3.86% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 95.45% |
Values | Daily Returns |
LO Funds Swiss vs. Immofonds
Performance |
Timeline |
LO Funds Swiss |
Immofonds |
LO Funds and Immofonds Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with LO Funds and Immofonds
The main advantage of trading using opposite LO Funds and Immofonds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LO Funds position performs unexpectedly, Immofonds 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 Immofonds will offset losses from the drop in Immofonds' long position.The idea behind LO Funds Swiss and Immofonds 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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