Correlation Between California Bond and Marsico Flexible

Can any of the company-specific risk be diversified away by investing in both California Bond and Marsico Flexible 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 California Bond and Marsico Flexible into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between California Bond Fund and Marsico Flexible Capital, you can compare the effects of market volatilities on California Bond and Marsico Flexible 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 California Bond with a short position of Marsico Flexible. Check out your portfolio center. Please also check ongoing floating volatility patterns of California Bond and Marsico Flexible.

Diversification Opportunities for California Bond and Marsico Flexible

0.0

Correlation Coefficient

California Bond  Marsico Flexible

Pay attention - limited upside

The 3 months correlation between California and Marsico is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding California Bond Fund and Marsico Flexible Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marsico Flexible Capital and California Bond 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 California Bond Fund are associated (or correlated) with Marsico Flexible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marsico Flexible Capital has no effect on the direction of California Bond i.e., California Bond and Marsico Flexible go up and down completely randomly.

Pair Corralation between California Bond and Marsico Flexible

If you would invest  1,022  in California Bond Fund on December 23, 2024 and sell it today you would earn a total of  3.00  from holding California Bond Fund or generate 0.29% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

California Bond Fund  vs.  Marsico Flexible Capital

California Bond

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in California Bond Fund are ranked lower than 1 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental drivers, California Bond is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Marsico Flexible Capital

Risk-Adjusted Performance

Very Weak

Over the last 90 days Marsico Flexible Capital has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong technical and fundamental indicators, Marsico Flexible is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with California Bond and Marsico Flexible

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

The idea behind California Bond Fund and Marsico Flexible Capital 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.