Correlation Between Arrow Managed and Eic Value
Can any of the company-specific risk be diversified away by investing in both Arrow Managed 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 Arrow Managed and Eic Value into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Arrow Managed Futures and Eic Value Fund, you can compare the effects of market volatilities on Arrow Managed 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 Arrow Managed with a short position of Eic Value. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arrow Managed and Eic Value.
Diversification Opportunities for Arrow Managed and Eic Value
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Arrow and Eic is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Arrow Managed Futures 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 Arrow Managed 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 Arrow Managed Futures 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 Arrow Managed i.e., Arrow Managed and Eic Value go up and down completely randomly.
Pair Corralation between Arrow Managed and Eic Value
Assuming the 90 days horizon Arrow Managed Futures is expected to generate 1.09 times more return on investment than Eic Value. However, Arrow Managed is 1.09 times more volatile than Eic Value Fund. It trades about 0.07 of its potential returns per unit of risk. Eic Value Fund is currently generating about -0.07 per unit of risk. If you would invest 565.00 in Arrow Managed Futures on October 26, 2024 and sell it today you would earn a total of 27.00 from holding Arrow Managed Futures or generate 4.78% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Arrow Managed Futures vs. Eic Value Fund
Performance |
Timeline |
Arrow Managed Futures |
Eic Value Fund |
Arrow Managed and Eic Value Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Arrow Managed and Eic Value
The main advantage of trading using opposite Arrow Managed and Eic Value positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arrow Managed 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.Arrow Managed vs. Hartford Moderate Allocation | Arrow Managed vs. Fisher Large Cap | Arrow Managed vs. Neiman Large Cap | Arrow Managed vs. T Rowe Price |
Eic Value vs. Blackrock Exchange Portfolio | Eic Value vs. Principal Fds Money | Eic Value vs. Aig Government Money | Eic Value vs. Vanguard Money Market |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |