Correlation Between Pax Global and Channing Intrinsic
Can any of the company-specific risk be diversified away by investing in both Pax Global and Channing Intrinsic 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 Pax Global and Channing Intrinsic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pax Global Opportunities and Channing Intrinsic Value, you can compare the effects of market volatilities on Pax Global and Channing Intrinsic 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 Pax Global with a short position of Channing Intrinsic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pax Global and Channing Intrinsic.
Diversification Opportunities for Pax Global and Channing Intrinsic
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Pax and Channing is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Pax Global Opportunities and Channing Intrinsic Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Channing Intrinsic Value and Pax Global 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 Pax Global Opportunities are associated (or correlated) with Channing Intrinsic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Channing Intrinsic Value has no effect on the direction of Pax Global i.e., Pax Global and Channing Intrinsic go up and down completely randomly.
Pair Corralation between Pax Global and Channing Intrinsic
Assuming the 90 days horizon Pax Global is expected to generate 2.72 times less return on investment than Channing Intrinsic. But when comparing it to its historical volatility, Pax Global Opportunities is 1.84 times less risky than Channing Intrinsic. It trades about 0.13 of its potential returns per unit of risk. Channing Intrinsic Value is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 1,000.00 in Channing Intrinsic Value on May 27, 2025 and sell it today you would earn a total of 152.00 from holding Channing Intrinsic Value or generate 15.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pax Global Opportunities vs. Channing Intrinsic Value
Performance |
| Timeline |
| Pax Global Opportunities |
| Channing Intrinsic Value |
Pax Global and Channing Intrinsic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pax Global and Channing Intrinsic
The main advantage of trading using opposite Pax Global and Channing Intrinsic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pax Global position performs unexpectedly, Channing Intrinsic 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 Channing Intrinsic will offset losses from the drop in Channing Intrinsic's long position.| Pax Global vs. Blackrock Exchange Portfolio | Pax Global vs. Voya Government Money | Pax Global vs. Franklin Government Money | Pax Global vs. Hsbc Treasury Money |
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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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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