Correlation Between Value Fund and Nt International

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

By analyzing existing cross correlation between Value Fund Investor and Nt International Small Mid, you can compare the effects of market volatilities on Value Fund and Nt International 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 Value Fund with a short position of Nt International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Value Fund and Nt International.

Diversification Opportunities for Value Fund and Nt International

0.69

Correlation Coefficient

Value Fund  Nt International

Poor diversification

The 3 months correlation between Value and ANTMX is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Value Fund Investor and Nt International Small Mid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nt International Small and Value Fund 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 Value Fund Investor are associated (or correlated) with Nt International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nt International Small has no effect on the direction of Value Fund i.e., Value Fund and Nt International go up and down completely randomly.

Pair Corralation between Value Fund and Nt International

Assuming the 90 days horizon Value Fund Investor is expected to generate 0.69 times more return on investment than Nt International. However, Value Fund Investor is 1.45 times less risky than Nt International. It trades about 0.11 of its potential returns per unit of risk. Nt International Small Mid is currently generating about 0.03 per unit of risk. If you would invest  766.00  in Value Fund Investor on December 29, 2024 and sell it today you would earn a total of  34.00  from holding Value Fund Investor or generate 4.44% return on investment over 90 days.

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

Value Fund Investor  vs.  Nt International Small Mid

Value Fund Investor

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Value Fund Investor are ranked lower than 8 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong essential indicators, Value Fund is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Nt International Small

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Nt International Small Mid are ranked lower than 2 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong primary indicators, Nt International is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Value Fund and Nt International

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

The idea behind Value Fund Investor and Nt International Small Mid 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.