Correlation Between Mutual Of and Stringer Growth
Can any of the company-specific risk be diversified away by investing in both Mutual Of and Stringer Growth 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 Mutual Of and Stringer Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mutual Of America and Stringer Growth Fund, you can compare the effects of market volatilities on Mutual Of and Stringer Growth 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 Mutual Of with a short position of Stringer Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mutual Of and Stringer Growth.
Diversification Opportunities for Mutual Of and Stringer Growth
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mutual and Stringer is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Mutual Of America and Stringer Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stringer Growth and Mutual Of 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 Mutual Of America are associated (or correlated) with Stringer Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stringer Growth has no effect on the direction of Mutual Of i.e., Mutual Of and Stringer Growth go up and down completely randomly.
Pair Corralation between Mutual Of and Stringer Growth
Assuming the 90 days horizon Mutual Of America is expected to under-perform the Stringer Growth. In addition to that, Mutual Of is 1.58 times more volatile than Stringer Growth Fund. It trades about -0.17 of its total potential returns per unit of risk. Stringer Growth Fund is currently generating about -0.05 per unit of volatility. If you would invest 1,290 in Stringer Growth Fund on December 3, 2024 and sell it today you would lose (29.00) from holding Stringer Growth Fund or give up 2.25% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 98.36% |
Values | Daily Returns |
Mutual Of America vs. Stringer Growth Fund
Performance |
Timeline |
Mutual Of America |
Stringer Growth |
Mutual Of and Stringer Growth Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Mutual Of and Stringer Growth
The main advantage of trading using opposite Mutual Of and Stringer Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mutual Of position performs unexpectedly, Stringer Growth 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 Stringer Growth will offset losses from the drop in Stringer Growth's long position.Mutual Of vs. Harbor Diversified International | Mutual Of vs. Madison Diversified Income | Mutual Of vs. Stone Ridge Diversified | Mutual Of vs. Diversified Bond Fund |
Stringer Growth vs. Rational Defensive Growth | Stringer Growth vs. The Hartford International | Stringer Growth vs. L Abbett Growth | Stringer Growth vs. Morgan Stanley Institutional |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data |