Correlation Between Europac Gold and Intermediate Bond
Can any of the company-specific risk be diversified away by investing in both Europac Gold and Intermediate Bond 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 Europac Gold and Intermediate Bond into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Europac Gold Fund and Intermediate Bond Fund, you can compare the effects of market volatilities on Europac Gold and Intermediate Bond 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 Europac Gold with a short position of Intermediate Bond. Check out your portfolio center. Please also check ongoing floating volatility patterns of Europac Gold and Intermediate Bond.
Diversification Opportunities for Europac Gold and Intermediate Bond
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Europac and Intermediate is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Europac Gold Fund and Intermediate Bond Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intermediate Bond and Europac Gold 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 Europac Gold Fund are associated (or correlated) with Intermediate Bond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intermediate Bond has no effect on the direction of Europac Gold i.e., Europac Gold and Intermediate Bond go up and down completely randomly.
Pair Corralation between Europac Gold and Intermediate Bond
Assuming the 90 days horizon Europac Gold Fund is expected to generate 17.99 times more return on investment than Intermediate Bond. However, Europac Gold is 17.99 times more volatile than Intermediate Bond Fund. It trades about 0.13 of its potential returns per unit of risk. Intermediate Bond Fund is currently generating about 0.15 per unit of risk. If you would invest 1,660 in Europac Gold Fund on August 30, 2025 and sell it today you would earn a total of 320.00 from holding Europac Gold Fund or generate 19.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Europac Gold Fund vs. Intermediate Bond Fund
Performance |
| Timeline |
| Europac Gold |
| Intermediate Bond |
Europac Gold and Intermediate Bond Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Europac Gold and Intermediate Bond
The main advantage of trading using opposite Europac Gold and Intermediate Bond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Europac Gold position performs unexpectedly, Intermediate Bond 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 Intermediate Bond will offset losses from the drop in Intermediate Bond's long position.| Europac Gold vs. Calamos Dynamic Convertible | Europac Gold vs. Fidelity Sai Convertible | Europac Gold vs. Lord Abbett Convertible | Europac Gold vs. Absolute Convertible Arbitrage |
| Intermediate Bond vs. Federated Global Allocation | Intermediate Bond vs. Locorr Strategic Allocation | Intermediate Bond vs. Guidemark Large Cap | Intermediate Bond vs. Qs Large 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 AI Portfolio Prophet module to use AI to generate optimal portfolios and find profitable investment opportunities.
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