Correlation Between Monks Investment and Gulf Investment

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

By analyzing existing cross correlation between Monks Investment Trust and Gulf Investment, you can compare the effects of market volatilities on Monks Investment and Gulf Investment 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 Monks Investment with a short position of Gulf Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Monks Investment and Gulf Investment.

Diversification Opportunities for Monks Investment and Gulf Investment

0.0

Correlation Coefficient

Monks Investment  Gulf Investment

Pay attention - limited upside

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

Pair Corralation between Monks Investment and Gulf Investment

If you would invest  117,000  in Monks Investment Trust on May 6, 2025 and sell it today you would earn a total of  17,000  from holding Monks Investment Trust or generate 14.53% return on investment over 90 days.

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

Monks Investment Trust  vs.  Gulf Investment

Monks Investment Trust

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Monks Investment Trust are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Monks Investment unveiled solid returns over the last few months and may actually be approaching a breakup point.

Gulf Investment

Risk-Adjusted Performance

Very Weak

Over the last 90 days Gulf Investment has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable forward indicators, Gulf Investment is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Monks Investment and Gulf Investment

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

The idea behind Monks Investment Trust and Gulf Investment 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.