Correlation Between Inspire International and Issachar Fund

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

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

Diversification Opportunities for Inspire International and Issachar Fund

-0.64

Correlation Coefficient

Inspire International  Issachar Fund

Excellent diversification

The 3 months correlation between Inspire and Issachar is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Inspire International ESG 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 Inspire International 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 Inspire International ESG 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 Inspire International i.e., Inspire International and Issachar Fund go up and down completely randomly.

Pair Corralation between Inspire International and Issachar Fund

Given the investment horizon of 90 days Inspire International ESG is expected to under-perform the Issachar Fund. But the etf apears to be less risky and, when comparing its historical volatility, Inspire International ESG is 1.44 times less risky than Issachar Fund. The etf trades about -0.2 of its potential returns per unit of risk. The Issachar Fund Issachar is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  947.00  in Issachar Fund Issachar on September 29, 2024 and sell it today you would earn a total of  41.00  from holding Issachar Fund Issachar or generate 4.33% return on investment over 90 days.

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

Inspire International ESG  vs.  Issachar Fund Issachar

Inspire International ESG

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Inspire International ESG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Etf's forward-looking indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the fund shareholders.

Issachar Fund Issachar

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Issachar Fund Issachar are ranked lower than 5 (%) 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 Inspire International and Issachar Fund

The main advantage of trading using opposite Inspire International and Issachar Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inspire International 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 Inspire International ESG 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.