Correlation Between Brinker Capital and Tocqueville Fund

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

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

Diversification Opportunities for Brinker Capital and Tocqueville Fund

0.98

Correlation Coefficient

Brinker Capital  Tocqueville Fund

Almost no diversification

The 3 months correlation between Brinker and Tocqueville is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Brinker Capital Destinations and The Tocqueville Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tocqueville Fund and Brinker Capital 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 Brinker Capital Destinations are associated (or correlated) with Tocqueville Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tocqueville Fund has no effect on the direction of Brinker Capital i.e., Brinker Capital and Tocqueville Fund go up and down completely randomly.

Pair Corralation between Brinker Capital and Tocqueville Fund

Assuming the 90 days horizon Brinker Capital is expected to generate 1.72 times less return on investment than Tocqueville Fund. But when comparing it to its historical volatility, Brinker Capital Destinations is 1.54 times less risky than Tocqueville Fund. It trades about 0.25 of its potential returns per unit of risk. The Tocqueville Fund is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest  4,550  in The Tocqueville Fund on May 2, 2025 and sell it today you would earn a total of  605.00  from holding The Tocqueville Fund or generate 13.3% return on investment over 90 days.

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

Brinker Capital Destinations  vs.  The Tocqueville Fund

Brinker Capital Dest

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Brinker Capital Destinations are ranked lower than 19 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Brinker Capital may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Tocqueville Fund

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in The Tocqueville Fund are ranked lower than 22 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Tocqueville Fund showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Brinker Capital and Tocqueville Fund

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

The idea behind Brinker Capital Destinations and The Tocqueville 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.