Correlation Between The Disciplined and 13d Activist

Can any of the company-specific risk be diversified away by investing in both The Disciplined and 13d Activist 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 The Disciplined and 13d Activist into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between The Disciplined Growth and 13d Activist Fund, you can compare the effects of market volatilities on The Disciplined and 13d Activist 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 The Disciplined with a short position of 13d Activist. Check out your portfolio center. Please also check ongoing floating volatility patterns of The Disciplined and 13d Activist.

Diversification Opportunities for The Disciplined and 13d Activist

0.4

Correlation Coefficient

The Disciplined  13d Activist

Very weak diversification

The 3 months correlation between The and 13d is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding The Disciplined Growth and 13d Activist Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 13d Activist and The Disciplined 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 The Disciplined Growth are associated (or correlated) with 13d Activist. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 13d Activist has no effect on the direction of The Disciplined i.e., The Disciplined and 13d Activist go up and down completely randomly.

Pair Corralation between The Disciplined and 13d Activist

Assuming the 90 days horizon The Disciplined Growth is expected to generate 0.89 times more return on investment than 13d Activist. However, The Disciplined Growth is 1.13 times less risky than 13d Activist. It trades about 0.25 of its potential returns per unit of risk. 13d Activist Fund is currently generating about 0.21 per unit of risk. If you would invest  2,221  in The Disciplined Growth on April 30, 2025 and sell it today you would earn a total of  320.00  from holding The Disciplined Growth or generate 14.41% return on investment over 90 days.

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

The Disciplined Growth  vs.  13d Activist Fund

The Disciplined Growth

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in The Disciplined Growth are ranked lower than 19 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, The Disciplined showed solid returns over the last few months and may actually be approaching a breakup point.

13d Activist

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in 13d Activist Fund are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, 13d Activist showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with The Disciplined and 13d Activist

The main advantage of trading using opposite The Disciplined and 13d Activist positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if The Disciplined position performs unexpectedly, 13d Activist 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 13d Activist will offset losses from the drop in 13d Activist's long position.

The idea behind The Disciplined Growth and 13d Activist Fund 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.