Correlation Between Capital World and GENERAL
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By analyzing existing cross correlation between Capital World Bond and GENERAL DYNAMICS PORATION, you can compare the effects of market volatilities on Capital World and GENERAL 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 Capital World with a short position of GENERAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capital World and GENERAL.
Diversification Opportunities for Capital World and GENERAL
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Capital and GENERAL is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Capital World Bond and GENERAL DYNAMICS PORATION in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GENERAL DYNAMICS PORATION and Capital World 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 Capital World Bond are associated (or correlated) with GENERAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GENERAL DYNAMICS PORATION has no effect on the direction of Capital World i.e., Capital World and GENERAL go up and down completely randomly.
Pair Corralation between Capital World and GENERAL
Assuming the 90 days horizon Capital World Bond is expected to generate 0.41 times more return on investment than GENERAL. However, Capital World Bond is 2.44 times less risky than GENERAL. It trades about -0.22 of its potential returns per unit of risk. GENERAL DYNAMICS PORATION is currently generating about -0.24 per unit of risk. If you would invest 1,655 in Capital World Bond on July 12, 2024 and sell it today you would lose (26.00) from holding Capital World Bond or give up 1.57% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Capital World Bond vs. GENERAL DYNAMICS PORATION
Performance |
Timeline |
Capital World Bond |
GENERAL DYNAMICS PORATION |
Capital World and GENERAL Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Capital World and GENERAL
The main advantage of trading using opposite Capital World and GENERAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capital World position performs unexpectedly, GENERAL 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 GENERAL will offset losses from the drop in GENERAL's long position.Capital World vs. Income Fund Of | Capital World vs. New World Fund | Capital World vs. American Mutual Fund | Capital World vs. American Mutual Fund |
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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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