Correlation Between Growth Fund and Boxx USD

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Growth Fund and Boxx USD 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 Growth Fund and Boxx USD into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Growth Fund and Boxx USD Hi-Yi, you can compare the effects of market volatilities on Growth Fund and Boxx USD 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 Growth Fund with a short position of Boxx USD. Check out your portfolio center. Please also check ongoing floating volatility patterns of Growth Fund and Boxx USD.

Diversification Opportunities for Growth Fund and Boxx USD

0.8
  Correlation Coefficient

Very poor diversification

The 3 months correlation between Growth and Boxx USD is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding The Growth Fund and Boxx USD Hi-Yi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boxx USD Hi-Yi and Growth 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 The Growth Fund are associated (or correlated) with Boxx USD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boxx USD Hi-Yi has no effect on the direction of Growth Fund i.e., Growth Fund and Boxx USD go up and down completely randomly.

Pair Corralation between Growth Fund and Boxx USD

Assuming the 90 days horizon The Growth Fund is expected to generate 2.21 times more return on investment than Boxx USD. However, Growth Fund is 2.21 times more volatile than Boxx USD Hi-Yi. It trades about 0.05 of its potential returns per unit of risk. Boxx USD Hi-Yi is currently generating about 0.08 per unit of risk. If you would invest  5,133  in The Growth Fund on August 29, 2022 and sell it today you would earn a total of  93.00  from holding The Growth Fund or generate 1.81% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

The Growth Fund  vs.  Boxx USD Hi-Yi

 Performance (%) 
       Timeline  
Growth Fund 
Growth Performance
0 of 100
Over the last 90 days The Growth Fund has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong technical and fundamental indicators, Growth Fund is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Growth Price Channel

Boxx USD Hi-Yi 
Boxx USD Performance
2 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Boxx USD Hi-Yi are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Boxx USD is not utilizing all of its potentials. The new stock price disturbance, may contribute to mid-run losses for the stockholders.

Boxx USD Price Channel

Growth Fund and Boxx USD Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Growth Fund and Boxx USD

The main advantage of trading using opposite Growth Fund and Boxx USD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Growth Fund position performs unexpectedly, Boxx USD 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 Boxx USD will offset losses from the drop in Boxx USD's long position.
Growth Fund vs. The Growth Fund
The idea behind The Growth Fund and Boxx USD Hi-Yi pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
Boxx USD vs. Vaneck Fallen Angel
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.

Other Complementary Tools

Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Go
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Go
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Go
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Go
Global Markets Map
Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes
Go
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Go
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Go