Correlation Between Nt Non and Equity Growth

Can any of the company-specific risk be diversified away by investing in both Nt Non and Equity Growth 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 Nt Non and Equity Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Nt Non US Intrinsic and Equity Growth Fund, you can compare the effects of market volatilities on Nt Non and Equity Growth 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 Nt Non with a short position of Equity Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nt Non and Equity Growth.

Diversification Opportunities for Nt Non and Equity Growth

-0.78

Correlation Coefficient

Nt Non  Equity Growth

Pay attention - limited upside

The 3 months correlation between ANTUX and Equity is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Nt Non US Intrinsic and Equity Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Equity Growth and Nt Non 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 Nt Non US Intrinsic are associated (or correlated) with Equity Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Equity Growth has no effect on the direction of Nt Non i.e., Nt Non and Equity Growth go up and down completely randomly.

Pair Corralation between Nt Non and Equity Growth

Assuming the 90 days horizon Nt Non US Intrinsic is expected to under-perform the Equity Growth. In addition to that, Nt Non is 1.33 times more volatile than Equity Growth Fund. It trades about -0.1 of its total potential returns per unit of risk. Equity Growth Fund is currently generating about 0.21 per unit of volatility. If you would invest  3,175  in Equity Growth Fund on September 13, 2024 and sell it today you would earn a total of  286.00  from holding Equity Growth Fund or generate 9.01% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Nt Non US Intrinsic  vs.  Equity Growth Fund

Nt Non Intrinsic

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Nt Non US Intrinsic has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Nt Non is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Equity Growth

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Equity Growth Fund are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Equity Growth may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Nt Non and Equity Growth

The main advantage of trading using opposite Nt Non and Equity Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nt Non position performs unexpectedly, Equity Growth 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 Growth will offset losses from the drop in Equity Growth's long position.

The idea behind Nt Non US Intrinsic and Equity Growth Fund 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.

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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 Transaction History module to view history of all your transactions and understand their impact on performance.