Correlation Between Issachar Fund and Sentinel Mon

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

By analyzing existing cross correlation between Issachar Fund Class and Sentinel Mon Stock, you can compare the effects of market volatilities on Issachar Fund and Sentinel Mon 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 Issachar Fund with a short position of Sentinel Mon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Issachar Fund and Sentinel Mon.

Diversification Opportunities for Issachar Fund and Sentinel Mon

0.54

Correlation Coefficient

Issachar Fund  Sentinel Mon

Very weak diversification

The 3 months correlation between Issachar and Sentinel is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Issachar Fund Class and Sentinel Mon Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sentinel Mon Stock and Issachar 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 Issachar Fund Class are associated (or correlated) with Sentinel Mon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sentinel Mon Stock has no effect on the direction of Issachar Fund i.e., Issachar Fund and Sentinel Mon go up and down completely randomly.

Pair Corralation between Issachar Fund and Sentinel Mon

Assuming the 90 days horizon Issachar Fund Class is expected to generate 1.5 times more return on investment than Sentinel Mon. However, Issachar Fund is 1.5 times more volatile than Sentinel Mon Stock. It trades about 0.17 of its potential returns per unit of risk. Sentinel Mon Stock is currently generating about 0.2 per unit of risk. If you would invest  932.00  in Issachar Fund Class on May 11, 2025 and sell it today you would earn a total of  104.00  from holding Issachar Fund Class or generate 11.16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.41%
Values	Daily Returns

Issachar Fund Class  vs.  Sentinel Mon Stock

Issachar Fund Class

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Issachar Fund Class are ranked lower than 13 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Issachar Fund may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Sentinel Mon Stock

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Sentinel Mon Stock are ranked lower than 15 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak essential indicators, Sentinel Mon may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Issachar Fund and Sentinel Mon

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

The idea behind Issachar Fund Class and Sentinel Mon Stock 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.