Correlation Between Select Fund and Amana Growth
Can any of the company-specific risk be diversified away by investing in both Select Fund and Amana Growth 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 Select Fund and Amana Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Select Fund R6 and Amana Growth Fund, you can compare the effects of market volatilities on Select Fund and Amana Growth 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 Select Fund with a short position of Amana Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Select Fund and Amana Growth.
Diversification Opportunities for Select Fund and Amana Growth
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Select and Amana is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Select Fund R6 and Amana Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amana Growth and Select 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 Select Fund R6 are associated (or correlated) with Amana Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amana Growth has no effect on the direction of Select Fund i.e., Select Fund and Amana Growth go up and down completely randomly.
Pair Corralation between Select Fund and Amana Growth
Assuming the 90 days horizon Select Fund is expected to generate 1.02 times less return on investment than Amana Growth. In addition to that, Select Fund is 1.01 times more volatile than Amana Growth Fund. It trades about 0.15 of its total potential returns per unit of risk. Amana Growth Fund is currently generating about 0.15 per unit of volatility. If you would invest 8,685 in Amana Growth Fund on July 27, 2025 and sell it today you would earn a total of 770.00 from holding Amana Growth Fund or generate 8.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Select Fund R6 vs. Amana Growth Fund
Performance |
| Timeline |
| Select Fund R6 |
| Amana Growth |
Select Fund and Amana Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Select Fund and Amana Growth
The main advantage of trading using opposite Select Fund and Amana Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Select Fund position performs unexpectedly, Amana Growth 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 Amana Growth will offset losses from the drop in Amana Growth's long position.| Select Fund vs. Select Fund Investor | Select Fund vs. Putnam Multi Cap Growth | Select Fund vs. The Hartford Growth | Select Fund vs. Real Estate Securities |
| Amana Growth vs. Amana Growth Fund | Amana Growth vs. Select Fund Investor | Amana Growth vs. Select Fund R6 | Amana Growth vs. Prudential Jennison International |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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