Correlation Between Growth Fund and Nt Non-us

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

By analyzing existing cross correlation between Growth Fund C and Nt Non US Intrinsic, you can compare the effects of market volatilities on Growth Fund and Nt Non-us 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 Growth Fund with a short position of Nt Non-us. Check out your portfolio center. Please also check ongoing floating volatility patterns of Growth Fund and Nt Non-us.

Diversification Opportunities for Growth Fund and Nt Non-us

-0.6

Correlation Coefficient

Growth Fund  Nt Non-us

Excellent diversification

The 3 months correlation between Growth and ANTGX is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Growth Fund C and Nt Non US Intrinsic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nt Non Intrinsic and Growth Fund 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 Growth Fund C are associated (or correlated) with Nt Non-us. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nt Non Intrinsic has no effect on the direction of Growth Fund i.e., Growth Fund and Nt Non-us go up and down completely randomly.

Pair Corralation between Growth Fund and Nt Non-us

Assuming the 90 days horizon Growth Fund C is expected to generate 1.12 times more return on investment than Nt Non-us. However, Growth Fund is 1.12 times more volatile than Nt Non US Intrinsic. It trades about 0.12 of its potential returns per unit of risk. Nt Non US Intrinsic is currently generating about -0.11 per unit of risk. If you would invest  4,682  in Growth Fund C on August 29, 2024 and sell it today you would earn a total of  364.00  from holding Growth Fund C or generate 7.77% return on investment over 90 days.

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

Growth Fund C  vs.  Nt Non US Intrinsic

Growth Fund C

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Growth Fund C are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, Growth Fund may actually be approaching a critical reversion point that can send shares even higher in December 2024.

Nt Non Intrinsic

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Nt Non US Intrinsic 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 Growth Fund and Nt Non-us

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

The idea behind Growth Fund C and Nt Non US Intrinsic 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.