Correlation Between James Balanced and James Aggressive
Can any of the company-specific risk be diversified away by investing in both James Balanced and James Aggressive 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 James Balanced and James Aggressive into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between James Balanced Golden and James Aggressive Allocation, you can compare the effects of market volatilities on James Balanced and James Aggressive 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 James Balanced with a short position of James Aggressive. Check out your portfolio center. Please also check ongoing floating volatility patterns of James Balanced and James Aggressive.
Diversification Opportunities for James Balanced and James Aggressive
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between James and James is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding James Balanced Golden and James Aggressive Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on James Aggressive All and James Balanced 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 James Balanced Golden are associated (or correlated) with James Aggressive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of James Aggressive All has no effect on the direction of James Balanced i.e., James Balanced and James Aggressive go up and down completely randomly.
Pair Corralation between James Balanced and James Aggressive
Assuming the 90 days horizon James Balanced is expected to generate 1.76 times less return on investment than James Aggressive. But when comparing it to its historical volatility, James Balanced Golden is 1.76 times less risky than James Aggressive. It trades about 0.29 of its potential returns per unit of risk. James Aggressive Allocation is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 1,371 in James Aggressive Allocation on May 2, 2025 and sell it today you would earn a total of 152.00 from holding James Aggressive Allocation or generate 11.09% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
James Balanced Golden vs. James Aggressive Allocation
Performance |
Timeline |
James Balanced Golden |
James Aggressive All |
James Balanced and James Aggressive Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with James Balanced and James Aggressive
The main advantage of trading using opposite James Balanced and James Aggressive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if James Balanced position performs unexpectedly, James Aggressive 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 James Aggressive will offset losses from the drop in James Aggressive's long position.James Balanced vs. Westwood Income Opportunity | James Balanced vs. First Eagle Global | James Balanced vs. Berwyn Income Fund | James Balanced vs. Fpa Crescent 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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