Correlation Between Financial Industries and Anchor Tactical

Can any of the company-specific risk be diversified away by investing in both Financial Industries and Anchor Tactical 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 Financial Industries and Anchor Tactical into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Financial Industries Fund and Anchor Tactical Muni, you can compare the effects of market volatilities on Financial Industries and Anchor Tactical 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 Financial Industries with a short position of Anchor Tactical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Financial Industries and Anchor Tactical.

Diversification Opportunities for Financial Industries and Anchor Tactical

0.0

Correlation Coefficient

Financial Industries  Anchor Tactical

Pay attention - limited upside

The 3 months correlation between Financial and Anchor is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Financial Industries Fund and Anchor Tactical Muni in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anchor Tactical Muni and Financial Industries 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 Financial Industries Fund are associated (or correlated) with Anchor Tactical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anchor Tactical Muni has no effect on the direction of Financial Industries i.e., Financial Industries and Anchor Tactical go up and down completely randomly.

Pair Corralation between Financial Industries and Anchor Tactical

If you would invest  1,855  in Financial Industries Fund on June 8, 2025 and sell it today you would earn a total of  87.00  from holding Financial Industries Fund or generate 4.69% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Financial Industries Fund  vs.  Anchor Tactical Muni

Financial Industries

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Financial Industries Fund are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Financial Industries is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Anchor Tactical Muni

Risk-Adjusted Performance

Weakest

Over the last 90 days Anchor Tactical Muni has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Anchor Tactical is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Financial Industries and Anchor Tactical

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

The idea behind Financial Industries Fund and Anchor Tactical Muni 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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.