Correlation Between Infrastructure Fund and Stadion Tactical
Can any of the company-specific risk be diversified away by investing in both Infrastructure Fund and Stadion Tactical 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 Infrastructure Fund and Stadion Tactical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Infrastructure Fund Retail and Stadion Tactical Growth, you can compare the effects of market volatilities on Infrastructure Fund and Stadion Tactical 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 Infrastructure Fund with a short position of Stadion Tactical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infrastructure Fund and Stadion Tactical.
Diversification Opportunities for Infrastructure Fund and Stadion Tactical
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Infrastructure and Stadion is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Infrastructure Fund Retail and Stadion Tactical Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stadion Tactical Growth and Infrastructure 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 Infrastructure Fund Retail are associated (or correlated) with Stadion Tactical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stadion Tactical Growth has no effect on the direction of Infrastructure Fund i.e., Infrastructure Fund and Stadion Tactical go up and down completely randomly.
Pair Corralation between Infrastructure Fund and Stadion Tactical
Assuming the 90 days horizon Infrastructure Fund is expected to generate 1.4 times less return on investment than Stadion Tactical. But when comparing it to its historical volatility, Infrastructure Fund Retail is 1.83 times less risky than Stadion Tactical. It trades about 0.11 of its potential returns per unit of risk. Stadion Tactical Growth is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,249 in Stadion Tactical Growth on September 12, 2024 and sell it today you would earn a total of 261.00 from holding Stadion Tactical Growth or generate 20.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.72% |
| Values | Daily Returns |
Infrastructure Fund Retail vs. Stadion Tactical Growth
Performance |
| Timeline |
| Infrastructure Fund |
| Stadion Tactical Growth |
Infrastructure Fund and Stadion Tactical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Infrastructure Fund and Stadion Tactical
The main advantage of trading using opposite Infrastructure Fund and Stadion Tactical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Infrastructure Fund position performs unexpectedly, Stadion Tactical 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 Stadion Tactical will offset losses from the drop in Stadion Tactical's long position.| Infrastructure Fund vs. Muirfield Fund Retail | Infrastructure Fund vs. Quantex Fund Retail | Infrastructure Fund vs. Dynamic Growth Fund | Infrastructure Fund vs. Invesco Dividend Income |
| Stadion Tactical vs. SCOR PK | Stadion Tactical vs. Morningstar Unconstrained Allocation | Stadion Tactical vs. Via Renewables | Stadion Tactical vs. Bondbloxx ETF Trust |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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