Correlation Between Issachar Fund and International Investors

Can any of the company-specific risk be diversified away by investing in both Issachar Fund and International Investors 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 International Investors 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 International Investors Gold, you can compare the effects of market volatilities on Issachar Fund and International Investors 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 International Investors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Issachar Fund and International Investors.

Diversification Opportunities for Issachar Fund and International Investors

0.14

Correlation Coefficient

Issachar Fund  International Investors

Average diversification

The 3 months correlation between Issachar and International is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Issachar Fund Class and International Investors Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Investors 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 International Investors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Investors has no effect on the direction of Issachar Fund i.e., Issachar Fund and International Investors go up and down completely randomly.

Pair Corralation between Issachar Fund and International Investors

Assuming the 90 days horizon Issachar Fund Class is expected to generate 0.49 times more return on investment than International Investors. However, Issachar Fund Class is 2.03 times less risky than International Investors. It trades about 0.33 of its potential returns per unit of risk. International Investors Gold is currently generating about -0.1 per unit of risk. If you would invest  979.00  in Issachar Fund Class on September 5, 2024 and sell it today you would earn a total of  68.00  from holding Issachar Fund Class or generate 6.95% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	95.45%
Values	Daily Returns

Issachar Fund Class  vs.  International Investors Gold

Issachar Fund Class

Risk-Adjusted Performance

18 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Issachar Fund Class are ranked lower than 18 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Issachar Fund may actually be approaching a critical reversion point that can send shares even higher in January 2025.

International Investors

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in International Investors Gold are ranked lower than 5 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, International Investors may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Issachar Fund and International Investors

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

The idea behind Issachar Fund Class and International Investors Gold 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.