Correlation Between Crow Point and Growth Fund

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

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

Diversification Opportunities for Crow Point and Growth Fund

0.95

Correlation Coefficient

Crow Point  Growth Fund

Almost no diversification

The 3 months correlation between Crow and Growth is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Crow Point Defined and Growth Fund Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Growth Fund Growth and Crow Point 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 Crow Point Defined are associated (or correlated) with Growth Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Growth Fund Growth has no effect on the direction of Crow Point i.e., Crow Point and Growth Fund go up and down completely randomly.

Pair Corralation between Crow Point and Growth Fund

Assuming the 90 days horizon Crow Point is expected to generate 5.01 times less return on investment than Growth Fund. But when comparing it to its historical volatility, Crow Point Defined is 1.18 times less risky than Growth Fund. It trades about 0.04 of its potential returns per unit of risk. Growth Fund Growth is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  4,331  in Growth Fund Growth on July 25, 2025 and sell it today you would earn a total of  391.00  from holding Growth Fund Growth or generate 9.03% return on investment over 90 days.

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

Crow Point Defined  vs.  Growth Fund Growth

Crow Point Defined

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Crow Point Defined are ranked lower than 3 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Crow Point is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Growth Fund Growth

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Growth Fund Growth are ranked lower than 13 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Growth Fund may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Pair Trading with Crow Point and Growth Fund

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

The idea behind Crow Point Defined and Growth Fund Growth 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..