Correlation Between Auer Growth and Income Fund
Can any of the company-specific risk be diversified away by investing in both Auer Growth and Income Fund 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 Auer Growth and Income Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Auer Growth Fund and Income Fund Of, you can compare the effects of market volatilities on Auer Growth and Income Fund 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 Auer Growth with a short position of Income Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Auer Growth and Income Fund.
Diversification Opportunities for Auer Growth and Income Fund
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Auer and Income is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Auer Growth Fund and Income Fund Of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Income Fund and Auer 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 Auer Growth Fund are associated (or correlated) with Income Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Income Fund has no effect on the direction of Auer Growth i.e., Auer Growth and Income Fund go up and down completely randomly.
Pair Corralation between Auer Growth and Income Fund
Assuming the 90 days horizon Auer Growth Fund is expected to under-perform the Income Fund. In addition to that, Auer Growth is 2.05 times more volatile than Income Fund Of. It trades about -0.02 of its total potential returns per unit of risk. Income Fund Of is currently generating about 0.14 per unit of volatility. If you would invest 2,427 in Income Fund Of on December 27, 2024 and sell it today you would earn a total of 108.00 from holding Income Fund Of or generate 4.45% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Auer Growth Fund vs. Income Fund Of
Performance |
Timeline |
Auer Growth Fund |
Income Fund |
Auer Growth and Income Fund Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Auer Growth and Income Fund
The main advantage of trading using opposite Auer Growth and Income Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Auer Growth position performs unexpectedly, Income Fund 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 Income Fund will offset losses from the drop in Income Fund's long position.Auer Growth vs. Lebenthal Lisanti Small | Auer Growth vs. Hodges Small Cap | Auer Growth vs. Oberweis Small Cap Opportunities | Auer Growth vs. Aegis Value Fund |
Income Fund vs. Income Fund Of | Income Fund vs. American Funds 2015 | Income Fund vs. New World Fund | Income Fund vs. American Mutual Fund |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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