Correlation Between Evercore Equity and Tocqueville Fund

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

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

Diversification Opportunities for Evercore Equity and Tocqueville Fund

0.69

Correlation Coefficient

Evercore Equity  Tocqueville Fund

Poor diversification

The 3 months correlation between Evercore and Tocqueville is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Evercore Equity Fund and The Tocqueville Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tocqueville Fund and Evercore Equity 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 Evercore Equity Fund 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 Evercore Equity i.e., Evercore Equity and Tocqueville Fund go up and down completely randomly.

Pair Corralation between Evercore Equity and Tocqueville Fund

Assuming the 90 days horizon Evercore Equity is expected to generate 1.84 times less return on investment than Tocqueville Fund. But when comparing it to its historical volatility, Evercore Equity Fund is 1.16 times less risky than Tocqueville Fund. It trades about 0.1 of its potential returns per unit of risk. The Tocqueville Fund is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  5,206  in The Tocqueville Fund on July 27, 2025 and sell it today you would earn a total of  449.00  from holding The Tocqueville Fund or generate 8.62% return on investment over 90 days.

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

Evercore Equity Fund  vs.  The Tocqueville Fund

Evercore Equity

Risk-Adjusted Performance

Fair

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

Tocqueville Fund

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in The Tocqueville Fund are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Tocqueville Fund may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Pair Trading with Evercore Equity and Tocqueville Fund

The main advantage of trading using opposite Evercore Equity and Tocqueville Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evercore Equity 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 Evercore Equity Fund 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.