Correlation Between Ohio Variable and Bruce Fund

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

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

Diversification Opportunities for Ohio Variable and Bruce Fund

0.25

Correlation Coefficient

Ohio Variable  Bruce Fund

Modest diversification

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

Pair Corralation between Ohio Variable and Bruce Fund

Assuming the 90 days horizon Ohio Variable College is expected to generate 0.81 times more return on investment than Bruce Fund. However, Ohio Variable College is 1.24 times less risky than Bruce Fund. It trades about 0.08 of its potential returns per unit of risk. Bruce Fund Bruce is currently generating about -0.11 per unit of risk. If you would invest  1,830  in Ohio Variable College on October 26, 2024 and sell it today you would earn a total of  50.00  from holding Ohio Variable College or generate 2.73% return on investment over 90 days.

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

Ohio Variable College  vs.  Bruce Fund Bruce

Ohio Variable College

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Ohio Variable College are ranked lower than 5 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Ohio Variable is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

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 fairly strong technical and fundamental indicators, Bruce Fund is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Ohio Variable and Bruce Fund

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

The idea behind Ohio Variable College and Bruce Fund Bruce 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.