Correlation Between Midas Fund and Strategic Asset

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

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

Diversification Opportunities for Midas Fund and Strategic Asset

0.02

Correlation Coefficient

Midas Fund  Strategic Asset

Significant diversification

The 3 months correlation between Midas and Strategic is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Midas Fund Midas and Strategic Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strategic Asset Mana and Midas 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 Midas Fund Midas are associated (or correlated) with Strategic Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strategic Asset Mana has no effect on the direction of Midas Fund i.e., Midas Fund and Strategic Asset go up and down completely randomly.

Pair Corralation between Midas Fund and Strategic Asset

Assuming the 90 days horizon Midas Fund Midas is expected to generate 6.42 times more return on investment than Strategic Asset. However, Midas Fund is 6.42 times more volatile than Strategic Asset Management. It trades about 0.13 of its potential returns per unit of risk. Strategic Asset Management is currently generating about 0.26 per unit of risk. If you would invest  202.00  in Midas Fund Midas on May 24, 2025 and sell it today you would earn a total of  31.00  from holding Midas Fund Midas or generate 15.35% return on investment over 90 days.

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

Midas Fund Midas  vs.  Strategic Asset Management

Midas Fund Midas

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Midas Fund Midas are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Midas Fund showed solid returns over the last few months and may actually be approaching a breakup point.

Strategic Asset Mana

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Strategic Asset Management are ranked lower than 20 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Strategic Asset is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Midas Fund and Strategic Asset

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

The idea behind Midas Fund Midas and Strategic Asset Management 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.