Correlation Between Banking Fund and Europe 125x
Can any of the company-specific risk be diversified away by investing in both Banking Fund and Europe 125x 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 Banking Fund and Europe 125x into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Banking Fund Class and Europe 125x Strategy, you can compare the effects of market volatilities on Banking Fund and Europe 125x 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 Banking Fund with a short position of Europe 125x. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banking Fund and Europe 125x.
Diversification Opportunities for Banking Fund and Europe 125x
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Banking and Europe is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Banking Fund Class and Europe 125x Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Europe 125x Strategy and Banking 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 Banking Fund Class are associated (or correlated) with Europe 125x. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Europe 125x Strategy has no effect on the direction of Banking Fund i.e., Banking Fund and Europe 125x go up and down completely randomly.
Pair Corralation between Banking Fund and Europe 125x
Assuming the 90 days horizon Banking Fund is expected to generate 4.59 times less return on investment than Europe 125x. In addition to that, Banking Fund is 1.3 times more volatile than Europe 125x Strategy. It trades about 0.02 of its total potential returns per unit of risk. Europe 125x Strategy is currently generating about 0.1 per unit of volatility. If you would invest 9,246 in Europe 125x Strategy on September 4, 2025 and sell it today you would earn a total of 487.00 from holding Europe 125x Strategy or generate 5.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Banking Fund Class vs. Europe 125x Strategy
Performance |
| Timeline |
| Banking Fund Class |
| Europe 125x Strategy |
Banking Fund and Europe 125x Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Banking Fund and Europe 125x
The main advantage of trading using opposite Banking Fund and Europe 125x positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banking Fund position performs unexpectedly, Europe 125x 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 Europe 125x will offset losses from the drop in Europe 125x's long position.| Banking Fund vs. The Gold Bullion | Banking Fund vs. World Precious Minerals | Banking Fund vs. First Eagle Gold | Banking Fund vs. James Balanced Golden |
| Europe 125x vs. Basic Materials Fund | Europe 125x vs. Basic Materials Fund | Europe 125x vs. Banking Fund Class | Europe 125x vs. Basic Materials Fund |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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