Correlation Between Issachar Fund and Growth Strategy
Can any of the company-specific risk be diversified away by investing in both Issachar Fund and Growth Strategy 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 Growth Strategy 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 Growth Strategy Fund, you can compare the effects of market volatilities on Issachar Fund and Growth Strategy 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 Growth Strategy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Issachar Fund and Growth Strategy.
Diversification Opportunities for Issachar Fund and Growth Strategy
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Issachar and GROWTH is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Issachar Fund Class and Growth Strategy Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Growth Strategy 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 Growth Strategy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Growth Strategy has no effect on the direction of Issachar Fund i.e., Issachar Fund and Growth Strategy go up and down completely randomly.
Pair Corralation between Issachar Fund and Growth Strategy
Assuming the 90 days horizon Issachar Fund is expected to generate 3.74 times less return on investment than Growth Strategy. In addition to that, Issachar Fund is 1.06 times more volatile than Growth Strategy Fund. It trades about 0.02 of its total potential returns per unit of risk. Growth Strategy Fund is currently generating about 0.07 per unit of volatility. If you would invest 960.00 in Growth Strategy Fund on September 3, 2024 and sell it today you would earn a total of 246.00 from holding Growth Strategy Fund or generate 25.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Issachar Fund Class vs. Growth Strategy Fund
Performance |
| Timeline |
| Issachar Fund Class |
| Growth Strategy |
Issachar Fund and Growth Strategy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Issachar Fund and Growth Strategy
The main advantage of trading using opposite Issachar Fund and Growth Strategy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Issachar Fund position performs unexpectedly, Growth Strategy 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 Growth Strategy will offset losses from the drop in Growth Strategy's long position.The idea behind Issachar Fund Class and Growth Strategy 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.
| Growth Strategy vs. American Funds The | Growth Strategy vs. American Funds The | Growth Strategy vs. Income Fund Of | Growth Strategy vs. Income Fund Of |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |