Correlation Between Stringer Growth and All Asset
Can any of the company-specific risk be diversified away by investing in both Stringer Growth and All Asset 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 Stringer Growth and All Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stringer Growth Fund and All Asset Fund, you can compare the effects of market volatilities on Stringer Growth and All Asset 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 Stringer Growth with a short position of All Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stringer Growth and All Asset.
Diversification Opportunities for Stringer Growth and All Asset
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Stringer and All is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Stringer Growth Fund and All Asset Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on All Asset Fund and Stringer Growth 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 Stringer Growth Fund are associated (or correlated) with All Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of All Asset Fund has no effect on the direction of Stringer Growth i.e., Stringer Growth and All Asset go up and down completely randomly.
Pair Corralation between Stringer Growth and All Asset
Assuming the 90 days horizon Stringer Growth Fund is expected to under-perform the All Asset. In addition to that, Stringer Growth is 1.31 times more volatile than All Asset Fund. It trades about -0.22 of its total potential returns per unit of risk. All Asset Fund is currently generating about -0.15 per unit of volatility. If you would invest 1,109 in All Asset Fund on January 31, 2024 and sell it today you would lose (13.00) from holding All Asset Fund or give up 1.17% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 95.45% |
Values | Daily Returns |
Stringer Growth Fund vs. All Asset Fund
Performance |
Timeline |
Stringer Growth |
All Asset Fund |
Stringer Growth and All Asset Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Stringer Growth and All Asset
The main advantage of trading using opposite Stringer Growth and All Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stringer Growth position performs unexpectedly, All Asset 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 All Asset will offset losses from the drop in All Asset's long position.Stringer Growth vs. Ab Select Equity | Stringer Growth vs. Gmo Global Equity | Stringer Growth vs. Locorr Dynamic Equity | Stringer Growth vs. Rbc Global Equity |
All Asset vs. Pimco Foreign Bond | All Asset vs. High Yield Fund | All Asset vs. Total Return Fund | All Asset vs. Real Return Fund |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
CEOs Directory Screen CEOs from public companies around the world | |
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |