Correlation Between Strategic Asset and Infrastructure Fund
Can any of the company-specific risk be diversified away by investing in both Strategic Asset and Infrastructure Fund 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 Asset and Infrastructure Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Strategic Asset Management and Infrastructure Fund Retail, you can compare the effects of market volatilities on Strategic Asset and Infrastructure Fund 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 Asset with a short position of Infrastructure Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Strategic Asset and Infrastructure Fund.
Diversification Opportunities for Strategic Asset and Infrastructure Fund
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Strategic and Infrastructure is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Strategic Asset Management and Infrastructure Fund Retail in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Infrastructure Fund and Strategic Asset 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 Asset Management are associated (or correlated) with Infrastructure Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Infrastructure Fund has no effect on the direction of Strategic Asset i.e., Strategic Asset and Infrastructure Fund go up and down completely randomly.
Pair Corralation between Strategic Asset and Infrastructure Fund
Assuming the 90 days horizon Strategic Asset Management is expected to generate 0.94 times more return on investment than Infrastructure Fund. However, Strategic Asset Management is 1.06 times less risky than Infrastructure Fund. It trades about 0.2 of its potential returns per unit of risk. Infrastructure Fund Retail is currently generating about 0.19 per unit of risk. If you would invest 1,193 in Strategic Asset Management on November 3, 2024 and sell it today you would earn a total of 17.00 from holding Strategic Asset Management or generate 1.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Strategic Asset Management vs. Infrastructure Fund Retail
Performance |
| Timeline |
| Strategic Asset Mana |
| Infrastructure Fund |
Strategic Asset and Infrastructure Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Strategic Asset and Infrastructure Fund
The main advantage of trading using opposite Strategic Asset and Infrastructure Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Strategic Asset position performs unexpectedly, Infrastructure Fund 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 Infrastructure Fund will offset losses from the drop in Infrastructure Fund's long position.The idea behind Strategic Asset Management and Infrastructure Fund Retail 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.
| Infrastructure Fund vs. Muirfield Fund Retail | Infrastructure Fund vs. Quantex Fund Retail | Infrastructure Fund vs. Dynamic Growth Fund | Infrastructure Fund vs. Invesco Dividend Income |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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