Correlation Between Applied Finance and Applied Finance
Can any of the company-specific risk be diversified away by investing in both Applied Finance and Applied Finance 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 Applied Finance and Applied Finance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Applied Finance Core and Applied Finance Core, you can compare the effects of market volatilities on Applied Finance and Applied Finance 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 Applied Finance with a short position of Applied Finance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Applied Finance and Applied Finance.
Diversification Opportunities for Applied Finance and Applied Finance
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Applied and Applied is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Applied Finance Core and Applied Finance Core in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Applied Finance Core and Applied Finance 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 Applied Finance Core are associated (or correlated) with Applied Finance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Applied Finance Core has no effect on the direction of Applied Finance i.e., Applied Finance and Applied Finance go up and down completely randomly.
Pair Corralation between Applied Finance and Applied Finance
Assuming the 90 days horizon Applied Finance Core is expected to under-perform the Applied Finance. But the mutual fund apears to be less risky and, when comparing its historical volatility, Applied Finance Core is 1.0 times less risky than Applied Finance. The mutual fund trades about 0.0 of its potential returns per unit of risk. The Applied Finance Core is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,227 in Applied Finance Core on August 26, 2025 and sell it today you would lose (2.00) from holding Applied Finance Core or give up 0.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Applied Finance Core vs. Applied Finance Core
Performance |
| Timeline |
| Applied Finance Core |
| Applied Finance Core |
Applied Finance and Applied Finance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Applied Finance and Applied Finance
The main advantage of trading using opposite Applied Finance and Applied Finance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Applied Finance position performs unexpectedly, Applied Finance 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 Applied Finance will offset losses from the drop in Applied Finance's long position.| Applied Finance vs. Franklin Natural Resources | Applied Finance vs. Invesco Energy Fund | Applied Finance vs. Calvert Global Energy | Applied Finance vs. Hennessy Bp Energy |
| Applied Finance vs. Franklin Small Cap | Applied Finance vs. Eagle Small Cap | Applied Finance vs. Qs Small Capitalization | Applied Finance vs. Artisan Small Cap |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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