Correlation Between Strategic Alternatives and Strategic Alternatives

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

Diversification Opportunities for Strategic Alternatives and Strategic Alternatives

StrategicStrategicStrategicStrategicDiversified Away100%
1.0
  Correlation Coefficient

No risk reduction

The 3 months correlation between Strategic and Strategic is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Strategic Alternatives Fund and Strategic Alternatives Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strategic Alternatives and Strategic Alternatives 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 Strategic Alternatives Fund are associated (or correlated) with Strategic Alternatives. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strategic Alternatives has no effect on the direction of Strategic Alternatives i.e., Strategic Alternatives and Strategic Alternatives go up and down completely randomly.

Pair Corralation between Strategic Alternatives and Strategic Alternatives

Assuming the 90 days horizon Strategic Alternatives Fund is expected to under-perform the Strategic Alternatives. But the mutual fund apears to be less risky and, when comparing its historical volatility, Strategic Alternatives Fund is 1.02 times less risky than Strategic Alternatives. The mutual fund trades about -0.1 of its potential returns per unit of risk. The Strategic Alternatives Fund is currently generating about -0.1 of returns per unit of risk over similar time horizon. If you would invest  957.00  in Strategic Alternatives Fund on November 26, 2024 and sell it today you would lose (33.00) from holding Strategic Alternatives Fund or give up 3.45% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

Strategic Alternatives Fund  vs.  Strategic Alternatives Fund

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -4-3-2-10
JavaScript chart by amCharts 3.21.15GFSZX GFSYX
       Timeline  
Strategic Alternatives 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Strategic Alternatives Fund has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Strategic Alternatives is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb9.059.19.159.29.259.39.359.49.459.5
Strategic Alternatives 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Strategic Alternatives Fund has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Strategic Alternatives is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb9.19.29.39.49.5

Strategic Alternatives and Strategic Alternatives Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-0.9-0.65-0.4-0.15-0.02310.05970.230.480.730.98 0.20.40.60.81.01.21.4
JavaScript chart by amCharts 3.21.15GFSZX GFSYX
       Returns  

Pair Trading with Strategic Alternatives and Strategic Alternatives

The main advantage of trading using opposite Strategic Alternatives and Strategic Alternatives positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Strategic Alternatives position performs unexpectedly, Strategic Alternatives 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 Strategic Alternatives will offset losses from the drop in Strategic Alternatives' long position.
The idea behind Strategic Alternatives Fund and Strategic Alternatives Fund 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.
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.

Other Complementary Tools

Technical Analysis
Check basic technical indicators and analysis based on most latest market data
Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Share Portfolio
Track or share privately all of your investments from the convenience of any device
Premium Stories
Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope
Portfolio Center
All portfolio management and optimization tools to improve performance of your portfolios