Correlation Between NBI Unconstrained and Ether Fund
Can any of the company-specific risk be diversified away by investing in both NBI Unconstrained and Ether 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 NBI Unconstrained and Ether Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NBI Unconstrained Fixed and Ether Fund, you can compare the effects of market volatilities on NBI Unconstrained and Ether 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 NBI Unconstrained with a short position of Ether Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of NBI Unconstrained and Ether Fund.
Diversification Opportunities for NBI Unconstrained and Ether Fund
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between NBI and Ether is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding NBI Unconstrained Fixed and Ether Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ether Fund and NBI Unconstrained 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 NBI Unconstrained Fixed are associated (or correlated) with Ether Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ether Fund has no effect on the direction of NBI Unconstrained i.e., NBI Unconstrained and Ether Fund go up and down completely randomly.
Pair Corralation between NBI Unconstrained and Ether Fund
Assuming the 90 days trading horizon NBI Unconstrained Fixed is expected to generate 0.08 times more return on investment than Ether Fund. However, NBI Unconstrained Fixed is 12.7 times less risky than Ether Fund. It trades about -0.13 of its potential returns per unit of risk. Ether Fund is currently generating about -0.02 per unit of risk. If you would invest 2,126 in NBI Unconstrained Fixed on September 25, 2024 and sell it today you would lose (22.00) from holding NBI Unconstrained Fixed or give up 1.03% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
NBI Unconstrained Fixed vs. Ether Fund
Performance |
Timeline |
NBI Unconstrained Fixed |
Ether Fund |
NBI Unconstrained and Ether Fund Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with NBI Unconstrained and Ether Fund
The main advantage of trading using opposite NBI Unconstrained and Ether Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NBI Unconstrained position performs unexpectedly, Ether 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 Ether Fund will offset losses from the drop in Ether Fund's long position.NBI Unconstrained vs. Manulife Multifactor Mid | NBI Unconstrained vs. Manulife Multifactor Canadian | NBI Unconstrained vs. Manulife Multifactor Large | NBI Unconstrained vs. Manulife Multifactor Canadian |
Ether Fund vs. iShares SPTSX 60 | Ether Fund vs. iShares Core SP | Ether Fund vs. iShares Core SPTSX | Ether Fund vs. BMO Aggregate Bond |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |