Correlation Between Spectrum Fund and Balanced Fund

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

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

Diversification Opportunities for Spectrum Fund and Balanced Fund

0.0

Correlation Coefficient

Spectrum Fund  Balanced Fund

Pay attention - limited upside

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

Pair Corralation between Spectrum Fund and Balanced Fund

If you would invest  1,337  in Spectrum Fund Retail on May 12, 2025 and sell it today you would earn a total of  117.00  from holding Spectrum Fund Retail or generate 8.75% return on investment over 90 days.

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

Spectrum Fund Retail  vs.  Balanced Fund Institutional

Spectrum Fund Retail

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Spectrum Fund Retail are ranked lower than 18 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Spectrum Fund may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Balanced Fund Instit

Risk-Adjusted Performance

Solid

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

Pair Trading with Spectrum Fund and Balanced Fund

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

The idea behind Spectrum Fund Retail and Balanced Fund Institutional 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.

Check out your portfolio center.

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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .