Correlation Between Auer Growth and Intech Us
Can any of the company-specific risk be diversified away by investing in both Auer Growth and Intech Us 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 Intech Us 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 Intech Managed Volatility, you can compare the effects of market volatilities on Auer Growth and Intech Us 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 Intech Us. Check out your portfolio center. Please also check ongoing floating volatility patterns of Auer Growth and Intech Us.
Diversification Opportunities for Auer Growth and Intech Us
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Auer and Intech is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Auer Growth Fund and Intech Managed Volatility in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intech Managed Volatility 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 Intech Us. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intech Managed Volatility has no effect on the direction of Auer Growth i.e., Auer Growth and Intech Us go up and down completely randomly.
Pair Corralation between Auer Growth and Intech Us
Assuming the 90 days horizon Auer Growth Fund is expected to under-perform the Intech Us. In addition to that, Auer Growth is 2.9 times more volatile than Intech Managed Volatility. It trades about -0.18 of its total potential returns per unit of risk. Intech Managed Volatility is currently generating about -0.05 per unit of volatility. If you would invest 1,211 in Intech Managed Volatility on December 1, 2024 and sell it today you would lose (38.00) from holding Intech Managed Volatility or give up 3.14% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Auer Growth Fund vs. Intech Managed Volatility
Performance |
Timeline |
Auer Growth Fund |
Intech Managed Volatility |
Auer Growth and Intech Us Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Auer Growth and Intech Us
The main advantage of trading using opposite Auer Growth and Intech Us positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Auer Growth position performs unexpectedly, Intech Us 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 Intech Us will offset losses from the drop in Intech Us' long position.Auer Growth vs. Lebenthal Lisanti Small | Auer Growth vs. Hodges Small Cap | Auer Growth vs. Schwartz Value Focused | Auer Growth vs. Oberweis Small Cap Opportunities |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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