Correlation Between Stadion Tactical and Stadion Trilogy

Can any of the company-specific risk be diversified away by investing in both Stadion Tactical and Stadion Trilogy 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 Stadion Tactical and Stadion Trilogy into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Stadion Tactical Growth and Stadion Trilogy Alternative, you can compare the effects of market volatilities on Stadion Tactical and Stadion Trilogy 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 Stadion Tactical with a short position of Stadion Trilogy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stadion Tactical and Stadion Trilogy.

Diversification Opportunities for Stadion Tactical and Stadion Trilogy

0.13

Correlation Coefficient

Stadion Tactical  Stadion Trilogy

Average diversification

The 3 months correlation between Stadion and Stadion is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Stadion Tactical Growth and Stadion Trilogy Alternative in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stadion Trilogy Alte and Stadion Tactical 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 Stadion Tactical Growth are associated (or correlated) with Stadion Trilogy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stadion Trilogy Alte has no effect on the direction of Stadion Tactical i.e., Stadion Tactical and Stadion Trilogy go up and down completely randomly.

Pair Corralation between Stadion Tactical and Stadion Trilogy

Assuming the 90 days horizon Stadion Tactical Growth is expected to generate 0.28 times more return on investment than Stadion Trilogy. However, Stadion Tactical Growth is 3.57 times less risky than Stadion Trilogy. It trades about -0.12 of its potential returns per unit of risk. Stadion Trilogy Alternative is currently generating about -0.24 per unit of risk. If you would invest  1,508  in Stadion Tactical Growth on September 27, 2024 and sell it today you would lose (30.00) from holding Stadion Tactical Growth or give up 1.99% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Stadion Tactical Growth  vs.  Stadion Trilogy Alternative

Stadion Tactical Growth

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Stadion Tactical Growth are ranked lower than 2 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental indicators, Stadion Tactical is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Stadion Trilogy Alte

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Stadion Trilogy Alternative has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's forward indicators remain fairly strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Pair Trading with Stadion Tactical and Stadion Trilogy

The main advantage of trading using opposite Stadion Tactical and Stadion Trilogy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stadion Tactical position performs unexpectedly, Stadion Trilogy 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 Trilogy will offset losses from the drop in Stadion Trilogy's long position.

The idea behind Stadion Tactical Growth and Stadion Trilogy Alternative 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.