Correlation Between Valic Company and Bruce Fund

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

By analyzing existing cross correlation between Valic Company I and Bruce Fund Bruce, you can compare the effects of market volatilities on Valic Company and Bruce 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 Valic Company with a short position of Bruce Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valic Company and Bruce Fund.

Diversification Opportunities for Valic Company and Bruce Fund

-0.5

Correlation Coefficient

Valic Company  Bruce Fund

Very good diversification

The 3 months correlation between Valic and Bruce is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Valic Company I and Bruce Fund Bruce in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bruce Fund Bruce and Valic Company 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 Valic Company I are associated (or correlated) with Bruce Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bruce Fund Bruce has no effect on the direction of Valic Company i.e., Valic Company and Bruce Fund go up and down completely randomly.

Pair Corralation between Valic Company and Bruce Fund

Assuming the 90 days horizon Valic Company I is expected to generate 0.75 times more return on investment than Bruce Fund. However, Valic Company I is 1.34 times less risky than Bruce Fund. It trades about -0.03 of its potential returns per unit of risk. Bruce Fund Bruce is currently generating about -0.23 per unit of risk. If you would invest  2,180  in Valic Company I on October 6, 2024 and sell it today you would lose (17.00) from holding Valic Company I or give up 0.78% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Valic Company I  vs.  Bruce Fund Bruce

Valic Company I

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Valic Company I are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Valic Company may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Bruce Fund Bruce

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Bruce Fund Bruce has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's technical and fundamental indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Pair Trading with Valic Company and Bruce Fund

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

The idea behind Valic Company I and Bruce Fund Bruce 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.