Correlation Between Bruce Fund and Ivy Global

Can any of the company-specific risk be diversified away by investing in both Bruce Fund and Ivy Global 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 Bruce Fund and Ivy Global into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for Bruce Fund and Ivy Global

0.25

Correlation Coefficient

Bruce Fund  Ivy Global

Modest diversification

The 3 months correlation between Bruce and Ivy is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Bruce Fund Bruce and Ivy Global Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ivy Global Equity and Bruce 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 Bruce Fund Bruce are associated (or correlated) with Ivy Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ivy Global Equity has no effect on the direction of Bruce Fund i.e., Bruce Fund and Ivy Global go up and down completely randomly.

Pair Corralation between Bruce Fund and Ivy Global

Assuming the 90 days horizon Bruce Fund Bruce is expected to under-perform the Ivy Global. In addition to that, Bruce Fund is 1.06 times more volatile than Ivy Global Equity. It trades about 0.0 of its total potential returns per unit of risk. Ivy Global Equity is currently generating about 0.08 per unit of volatility. If you would invest  751.00  in Ivy Global Equity on October 10, 2024 and sell it today you would earn a total of  175.00  from holding Ivy Global Equity or generate 23.3% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	79.03%
Values	Daily Returns

Bruce Fund Bruce  vs.  Ivy Global Equity

Bruce Fund Bruce

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Bruce Fund Bruce has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's technical and fundamental indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Ivy Global Equity

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Bruce Fund and Ivy Global

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

The idea behind Bruce Fund Bruce and Ivy Global Equity 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.