Correlation Between All Asset and Stadion Tactical
Can any of the company-specific risk be diversified away by investing in both All Asset 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 All Asset and Stadion Tactical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between All Asset Fund and Stadion Tactical Growth, you can compare the effects of market volatilities on All Asset 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 All Asset with a short position of Stadion Tactical. Check out your portfolio center. Please also check ongoing floating volatility patterns of All Asset and Stadion Tactical.
Diversification Opportunities for All Asset and Stadion Tactical
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between All and Stadion is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding All Asset Fund 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 All 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 All Asset Fund 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 All Asset i.e., All Asset and Stadion Tactical go up and down completely randomly.
Pair Corralation between All Asset and Stadion Tactical
Assuming the 90 days horizon All Asset Fund is expected to generate 0.61 times more return on investment than Stadion Tactical. However, All Asset Fund is 1.64 times less risky than Stadion Tactical. It trades about 0.02 of its potential returns per unit of risk. Stadion Tactical Growth is currently generating about -0.01 per unit of risk. If you would invest 1,108 in All Asset Fund on March 7, 2024 and sell it today you would earn a total of 5.00 from holding All Asset Fund or generate 0.45% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
All Asset Fund vs. Stadion Tactical Growth
Performance |
Timeline |
All Asset Fund |
Stadion Tactical Growth |
All Asset and Stadion Tactical Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with All Asset and Stadion Tactical
The main advantage of trading using opposite All Asset and Stadion Tactical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if All Asset 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.All Asset vs. Quadratic Interest Rate | All Asset vs. Baron Global Advantage | All Asset vs. Amplify BlackSwan Growth | All Asset vs. Aquagold International |
Stadion Tactical vs. Quadratic Interest Rate | Stadion Tactical vs. Baron Global Advantage | Stadion Tactical vs. Amplify BlackSwan Growth | Stadion Tactical vs. Aquagold International |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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