Correlation Between Europac Gold and Arrow Managed
Can any of the company-specific risk be diversified away by investing in both Europac Gold and Arrow Managed 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 Arrow Managed 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 Arrow Managed Futures, you can compare the effects of market volatilities on Europac Gold and Arrow Managed 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 Arrow Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Europac Gold and Arrow Managed.
Diversification Opportunities for Europac Gold and Arrow Managed
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Europac and Arrow is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Europac Gold Fund and Arrow Managed Futures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arrow Managed Futures 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 Arrow Managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arrow Managed Futures has no effect on the direction of Europac Gold i.e., Europac Gold and Arrow Managed go up and down completely randomly.
Pair Corralation between Europac Gold and Arrow Managed
Assuming the 90 days horizon Europac Gold Fund is expected to generate 1.62 times more return on investment than Arrow Managed. However, Europac Gold is 1.62 times more volatile than Arrow Managed Futures. It trades about 0.13 of its potential returns per unit of risk. Arrow Managed Futures is currently generating about 0.15 per unit of risk. If you would invest 1,681 in Europac Gold Fund on September 5, 2025 and sell it today you would earn a total of 326.00 from holding Europac Gold Fund or generate 19.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Europac Gold Fund vs. Arrow Managed Futures
Performance |
| Timeline |
| Europac Gold |
| Arrow Managed Futures |
Europac Gold and Arrow Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Europac Gold and Arrow Managed
The main advantage of trading using opposite Europac Gold and Arrow Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Europac Gold position performs unexpectedly, Arrow Managed 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 Arrow Managed will offset losses from the drop in Arrow Managed's long position.| Europac Gold vs. Fidelity Series Government | Europac Gold vs. Long Term Government Fund | Europac Gold vs. Short Term Government Fund | Europac Gold vs. Virtus Seix Government |
| Arrow Managed vs. Rbc Emerging Markets | Arrow Managed vs. Crafword Dividend Growth | Arrow Managed vs. Locorr Market Trend | Arrow Managed vs. Western Asset Municipal |
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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