Correlation Between Aggressive Growth and Issachar Fund

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

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

Diversification Opportunities for Aggressive Growth and Issachar Fund

0.83

Correlation Coefficient

Aggressive Growth  Issachar Fund

Very poor diversification

The 3 months correlation between Aggressive and Issachar is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Aggressive Growth Portfolio and Issachar Fund Issachar in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Issachar Fund Issachar and Aggressive Growth 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 Aggressive Growth Portfolio are associated (or correlated) with Issachar Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Issachar Fund Issachar has no effect on the direction of Aggressive Growth i.e., Aggressive Growth and Issachar Fund go up and down completely randomly.

Pair Corralation between Aggressive Growth and Issachar Fund

Assuming the 90 days horizon Aggressive Growth Portfolio is expected to generate 1.4 times more return on investment than Issachar Fund. However, Aggressive Growth is 1.4 times more volatile than Issachar Fund Issachar. It trades about -0.09 of its potential returns per unit of risk. Issachar Fund Issachar is currently generating about -0.15 per unit of risk. If you would invest  10,152  in Aggressive Growth Portfolio on September 26, 2024 and sell it today you would lose (353.00) from holding Aggressive Growth Portfolio or give up 3.48% of portfolio value over 90 days.

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

Aggressive Growth Portfolio  vs.  Issachar Fund Issachar

Aggressive Growth

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Aggressive Growth Portfolio are ranked lower than 5 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical indicators, Aggressive Growth is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Issachar Fund Issachar

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Issachar Fund Issachar are ranked lower than 7 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Issachar Fund is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Aggressive Growth and Issachar Fund

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

The idea behind Aggressive Growth Portfolio and Issachar Fund Issachar 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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.