Correlation Between Bond Fund and Cavanal Hill
Can any of the company-specific risk be diversified away by investing in both Bond Fund and Cavanal Hill 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 Bond Fund and Cavanal Hill into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bond Fund Investor and Cavanal Hill Ultra, you can compare the effects of market volatilities on Bond Fund and Cavanal Hill 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 Bond Fund with a short position of Cavanal Hill. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bond Fund and Cavanal Hill.
Diversification Opportunities for Bond Fund and Cavanal Hill
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Bond and Cavanal is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Bond Fund Investor and Cavanal Hill Ultra in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cavanal Hill Ultra and Bond 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 Bond Fund Investor are associated (or correlated) with Cavanal Hill. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cavanal Hill Ultra has no effect on the direction of Bond Fund i.e., Bond Fund and Cavanal Hill go up and down completely randomly.
Pair Corralation between Bond Fund and Cavanal Hill
Assuming the 90 days horizon Bond Fund Investor is expected to generate 5.06 times more return on investment than Cavanal Hill. However, Bond Fund is 5.06 times more volatile than Cavanal Hill Ultra. It trades about 0.1 of its potential returns per unit of risk. Cavanal Hill Ultra is currently generating about 0.2 per unit of risk. If you would invest 831.00 in Bond Fund Investor on December 28, 2024 and sell it today you would earn a total of 15.00 from holding Bond Fund Investor or generate 1.81% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 98.36% |
Values | Daily Returns |
Bond Fund Investor vs. Cavanal Hill Ultra
Performance |
Timeline |
Bond Fund Investor |
Cavanal Hill Ultra |
Bond Fund and Cavanal Hill Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bond Fund and Cavanal Hill
The main advantage of trading using opposite Bond Fund and Cavanal Hill positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bond Fund position performs unexpectedly, Cavanal Hill 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 Cavanal Hill will offset losses from the drop in Cavanal Hill's long position.Bond Fund vs. Biotechnology Ultrasector Profund | Bond Fund vs. Virtus Artificial Intelligence | Bond Fund vs. Specialized Technology Fund | Bond Fund vs. Health Biotchnology Portfolio |
Cavanal Hill vs. Jhancock Disciplined Value | Cavanal Hill vs. Allianzgi Nfj Large Cap | Cavanal Hill vs. Dunham Large Cap | Cavanal Hill vs. Pace Large Value |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Commodity Directory Find actively traded commodities issued by global exchanges | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
Transaction History View history of all your transactions and understand their impact on performance |