Correlation Between Growth Fund and Bbh Select
Can any of the company-specific risk be diversified away by investing in both Growth Fund and Bbh Select 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 Bbh Select into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Growth Fund Of and Bbh Select Series, you can compare the effects of market volatilities on Growth Fund and Bbh Select 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 Bbh Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Growth Fund and Bbh Select.
Diversification Opportunities for Growth Fund and Bbh Select
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Growth and Bbh is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Growth Fund Of and Bbh Select Series in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bbh Select Series 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 Of are associated (or correlated) with Bbh Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bbh Select Series has no effect on the direction of Growth Fund i.e., Growth Fund and Bbh Select go up and down completely randomly.
Pair Corralation between Growth Fund and Bbh Select
Assuming the 90 days horizon Growth Fund Of is expected to generate 1.25 times more return on investment than Bbh Select. However, Growth Fund is 1.25 times more volatile than Bbh Select Series. It trades about 0.09 of its potential returns per unit of risk. Bbh Select Series is currently generating about 0.08 per unit of risk. If you would invest 7,137 in Growth Fund Of on July 20, 2025 and sell it today you would earn a total of 349.00 from holding Growth Fund Of or generate 4.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Growth Fund Of vs. Bbh Select Series
Performance |
| Timeline |
| Growth Fund |
| Bbh Select Series |
Growth Fund and Bbh Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Growth Fund and Bbh Select
The main advantage of trading using opposite Growth Fund and Bbh Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Growth Fund position performs unexpectedly, Bbh Select 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 Bbh Select will offset losses from the drop in Bbh Select's long position.| Growth Fund vs. Goldman Sachs Financial | Growth Fund vs. Angel Oak Financial | Growth Fund vs. John Hancock Financial | Growth Fund vs. Rmb Mendon Financial |
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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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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