Correlation Between Issachar Fund and Great-west Core
Can any of the company-specific risk be diversified away by investing in both Issachar Fund and Great-west Core 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 Issachar Fund and Great-west Core into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Issachar Fund Class and Great West E Strategies, you can compare the effects of market volatilities on Issachar Fund and Great-west Core 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 Issachar Fund with a short position of Great-west Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Issachar Fund and Great-west Core.
Diversification Opportunities for Issachar Fund and Great-west Core
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Issachar and GREAT-WEST is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Issachar Fund Class and Great West E Strategies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great-west Core and Issachar 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 Issachar Fund Class are associated (or correlated) with Great-west Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Great-west Core has no effect on the direction of Issachar Fund i.e., Issachar Fund and Great-west Core go up and down completely randomly.
Pair Corralation between Issachar Fund and Great-west Core
Assuming the 90 days horizon Issachar Fund Class is expected to generate 1.05 times more return on investment than Great-west Core. However, Issachar Fund is 1.05 times more volatile than Great West E Strategies. It trades about 0.25 of its potential returns per unit of risk. Great West E Strategies is currently generating about 0.19 per unit of risk. If you would invest 938.00 in Issachar Fund Class on September 4, 2024 and sell it today you would earn a total of 119.00 from holding Issachar Fund Class or generate 12.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.44% |
| Values | Daily Returns |
Issachar Fund Class vs. Great West E Strategies
Performance |
| Timeline |
| Issachar Fund Class |
| Great-west Core |
Issachar Fund and Great-west Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Issachar Fund and Great-west Core
The main advantage of trading using opposite Issachar Fund and Great-west Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Issachar Fund position performs unexpectedly, Great-west Core 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 Great-west Core will offset losses from the drop in Great-west Core's long position.| Issachar Fund vs. Oppenheimer International Diversified | Issachar Fund vs. Massmutual Premier Diversified | Issachar Fund vs. Massmutual Select Diversified | Issachar Fund vs. Adams Diversified Equity |
| Great-west Core vs. Artisan Thematic Fund | Great-west Core vs. Issachar Fund Class | Great-west Core vs. Balanced Fund Investor | Great-west Core vs. Volumetric Fund Volumetric |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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