Correlation Between Gateway Fund and Persimmon Long/short
Can any of the company-specific risk be diversified away by investing in both Gateway Fund and Persimmon Long/short 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 Gateway Fund and Persimmon Long/short into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gateway Fund Class and Persimmon Longshort Fund, you can compare the effects of market volatilities on Gateway Fund and Persimmon Long/short 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 Gateway Fund with a short position of Persimmon Long/short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gateway Fund and Persimmon Long/short.
Diversification Opportunities for Gateway Fund and Persimmon Long/short
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Gateway and Persimmon is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Gateway Fund Class and Persimmon Longshort Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Persimmon Long/short and Gateway 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 Gateway Fund Class are associated (or correlated) with Persimmon Long/short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Persimmon Long/short has no effect on the direction of Gateway Fund i.e., Gateway Fund and Persimmon Long/short go up and down completely randomly.
Pair Corralation between Gateway Fund and Persimmon Long/short
Assuming the 90 days horizon Gateway Fund is expected to generate 1.35 times less return on investment than Persimmon Long/short. But when comparing it to its historical volatility, Gateway Fund Class is 1.17 times less risky than Persimmon Long/short. It trades about 0.08 of its potential returns per unit of risk. Persimmon Longshort Fund is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,269 in Persimmon Longshort Fund on August 13, 2025 and sell it today you would earn a total of 460.00 from holding Persimmon Longshort Fund or generate 36.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gateway Fund Class vs. Persimmon Longshort Fund
Performance |
| Timeline |
| Gateway Fund Class |
| Persimmon Long/short |
Gateway Fund and Persimmon Long/short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gateway Fund and Persimmon Long/short
The main advantage of trading using opposite Gateway Fund and Persimmon Long/short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gateway Fund position performs unexpectedly, Persimmon Long/short 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 Persimmon Long/short will offset losses from the drop in Persimmon Long/short's long position.| Gateway Fund vs. Fbjygx | Gateway Fund vs. Fa 529 Aggressive | Gateway Fund vs. Abr 7525 Volatility | Gateway Fund vs. Iaadx |
| Persimmon Long/short vs. Fanisx | Persimmon Long/short vs. Balanced Fund Retail | Persimmon Long/short vs. Fbjygx | Persimmon Long/short vs. Abr 7525 Volatility |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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