Correlation Between Polen Global and Polen Global

Can any of the company-specific risk be diversified away by investing in both Polen Global and Polen Global 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 Polen Global and Polen Global into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Polen Global Growth and Polen Global Growth, you can compare the effects of market volatilities on Polen Global and Polen Global 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 Polen Global with a short position of Polen Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Polen Global and Polen Global.

Diversification Opportunities for Polen Global and Polen Global

0.94

Correlation Coefficient

Polen Global  Polen Global

Almost no diversification

The 3 months correlation between Polen and Polen is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Polen Global Growth and Polen Global Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Polen Global Growth and Polen 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 Polen Global Growth are associated (or correlated) with Polen Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Polen Global Growth has no effect on the direction of Polen Global i.e., Polen Global and Polen Global go up and down completely randomly.

Pair Corralation between Polen Global and Polen Global

Assuming the 90 days horizon Polen Global is expected to generate 1.03 times less return on investment than Polen Global. But when comparing it to its historical volatility, Polen Global Growth is 1.01 times less risky than Polen Global. It trades about 0.15 of its potential returns per unit of risk. Polen Global Growth is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  2,625  in Polen Global Growth on September 5, 2024 and sell it today you would earn a total of  200.00  from holding Polen Global Growth or generate 7.62% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	98.44%
Values	Daily Returns

Polen Global Growth  vs.  Polen Global Growth

Polen Global Growth

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Polen Global Growth are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Polen Global may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Polen Global Growth

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Polen Global Growth are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Polen Global may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Polen Global and Polen Global

The main advantage of trading using opposite Polen Global and Polen Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Polen Global position performs unexpectedly, Polen Global 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 Polen Global will offset losses from the drop in Polen Global's long position.

The idea behind Polen Global Growth and Polen Global Growth 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.

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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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.