Correlation Between Atac Inflation and Large Cap

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

By analyzing existing cross correlation between Atac Inflation Rotation and Large Cap Growth Profund, you can compare the effects of market volatilities on Atac Inflation and Large Cap 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 Atac Inflation with a short position of Large Cap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atac Inflation and Large Cap.

Diversification Opportunities for Atac Inflation and Large Cap

0.97

Correlation Coefficient

Atac Inflation  Large Cap

Almost no diversification

The 3 months correlation between Atac and Large is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Atac Inflation Rotation and Large Cap Growth Profund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Large Cap Growth and Atac Inflation 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 Atac Inflation Rotation are associated (or correlated) with Large Cap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Large Cap Growth has no effect on the direction of Atac Inflation i.e., Atac Inflation and Large Cap go up and down completely randomly.

Pair Corralation between Atac Inflation and Large Cap

Assuming the 90 days horizon Atac Inflation is expected to generate 1.16 times less return on investment than Large Cap. In addition to that, Atac Inflation is 1.66 times more volatile than Large Cap Growth Profund. It trades about 0.16 of its total potential returns per unit of risk. Large Cap Growth Profund is currently generating about 0.3 per unit of volatility. If you would invest  4,353  in Large Cap Growth Profund on May 2, 2025 and sell it today you would earn a total of  731.00  from holding Large Cap Growth Profund or generate 16.79% return on investment over 90 days.

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

Atac Inflation Rotation  vs.  Large Cap Growth Profund

Atac Inflation Rotation

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Atac Inflation Rotation are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly unfluctuating fundamental indicators, Atac Inflation showed solid returns over the last few months and may actually be approaching a breakup point.

Large Cap Growth

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Large Cap Growth Profund are ranked lower than 23 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Large Cap showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Atac Inflation and Large Cap

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

The idea behind Atac Inflation Rotation and Large Cap Growth Profund 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.

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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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.