Correlation Between Global Technology and Eic Value
Can any of the company-specific risk be diversified away by investing in both Global Technology and Eic Value 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 Global Technology and Eic Value into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Technology Portfolio and Eic Value Fund, you can compare the effects of market volatilities on Global Technology and Eic Value 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 Global Technology with a short position of Eic Value. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Technology and Eic Value.
Diversification Opportunities for Global Technology and Eic Value
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Global and Eic is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Global Technology Portfolio and Eic Value Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eic Value Fund and Global Technology 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 Global Technology Portfolio are associated (or correlated) with Eic Value. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eic Value Fund has no effect on the direction of Global Technology i.e., Global Technology and Eic Value go up and down completely randomly.
Pair Corralation between Global Technology and Eic Value
Assuming the 90 days horizon Global Technology Portfolio is expected to generate 1.59 times more return on investment than Eic Value. However, Global Technology is 1.59 times more volatile than Eic Value Fund. It trades about 0.05 of its potential returns per unit of risk. Eic Value Fund is currently generating about -0.35 per unit of risk. If you would invest 2,138 in Global Technology Portfolio on September 25, 2024 and sell it today you would earn a total of 22.00 from holding Global Technology Portfolio or generate 1.03% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Global Technology Portfolio vs. Eic Value Fund
Performance |
Timeline |
Global Technology |
Eic Value Fund |
Global Technology and Eic Value Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Global Technology and Eic Value
The main advantage of trading using opposite Global Technology and Eic Value positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Technology position performs unexpectedly, Eic Value 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 Eic Value will offset losses from the drop in Eic Value's long position.Global Technology vs. Eic Value Fund | Global Technology vs. Falcon Focus Scv | Global Technology vs. Predex Funds | Global Technology vs. Issachar Fund Class |
Eic Value vs. Amg Managers Centersquare | Eic Value vs. Columbia Real Estate | Eic Value vs. Vy Clarion Real | Eic Value vs. Nexpoint Real Estate |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
CEOs Directory Screen CEOs from public companies around the world |