Correlation Between Auxier Focus and T Rowe
Can any of the company-specific risk be diversified away by investing in both Auxier Focus and T Rowe 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 Auxier Focus and T Rowe into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Auxier Focus Fund and T Rowe Price, you can compare the effects of market volatilities on Auxier Focus and T Rowe 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 Auxier Focus with a short position of T Rowe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Auxier Focus and T Rowe.
Diversification Opportunities for Auxier Focus and T Rowe
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Auxier and RPOIX is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Auxier Focus Fund and T Rowe Price in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on T Rowe Price and Auxier Focus 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 Auxier Focus Fund are associated (or correlated) with T Rowe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of T Rowe Price has no effect on the direction of Auxier Focus i.e., Auxier Focus and T Rowe go up and down completely randomly.
Pair Corralation between Auxier Focus and T Rowe
Assuming the 90 days horizon Auxier Focus Fund is expected to generate 3.58 times more return on investment than T Rowe. However, Auxier Focus is 3.58 times more volatile than T Rowe Price. It trades about 0.15 of its potential returns per unit of risk. T Rowe Price is currently generating about 0.34 per unit of risk. If you would invest 3,189 in Auxier Focus Fund on June 12, 2025 and sell it today you would earn a total of 145.00 from holding Auxier Focus Fund or generate 4.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.36% |
| Values | Daily Returns |
Auxier Focus Fund vs. T Rowe Price
Performance |
| Timeline |
| Auxier Focus |
| T Rowe Price |
Auxier Focus and T Rowe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Auxier Focus and T Rowe
The main advantage of trading using opposite Auxier Focus and T Rowe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Auxier Focus position performs unexpectedly, T Rowe 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 T Rowe will offset losses from the drop in T Rowe's long position.| Auxier Focus vs. California Municipal Portfolio | Auxier Focus vs. Morningstar Defensive Bond | Auxier Focus vs. Ambrus Core Bond | Auxier Focus vs. Transamerica Intermediate Muni |
| T Rowe vs. Angel Oak Financial | T Rowe vs. Gabelli Global Financial | T Rowe vs. Putnam Global Financials | T Rowe vs. Goldman Sachs Financial |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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