Correlation Between Global Strategist and Core Fixed

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

By analyzing existing cross correlation between Global Strategist Portfolio and Core Fixed Income, you can compare the effects of market volatilities on Global Strategist and Core Fixed 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 Global Strategist with a short position of Core Fixed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Strategist and Core Fixed.

Diversification Opportunities for Global Strategist and Core Fixed

0.94

Correlation Coefficient

Global Strategist  Core Fixed

Almost no diversification

The 3 months correlation between Global and Core is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Global Strategist Portfolio and Core Fixed Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Core Fixed Income and Global Strategist 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 Global Strategist Portfolio are associated (or correlated) with Core Fixed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Core Fixed Income has no effect on the direction of Global Strategist i.e., Global Strategist and Core Fixed go up and down completely randomly.

Pair Corralation between Global Strategist and Core Fixed

Assuming the 90 days horizon Global Strategist Portfolio is expected to generate 1.33 times more return on investment than Core Fixed. However, Global Strategist is 1.33 times more volatile than Core Fixed Income. It trades about 0.29 of its potential returns per unit of risk. Core Fixed Income is currently generating about 0.2 per unit of risk. If you would invest  1,867  in Global Strategist Portfolio on May 22, 2025 and sell it today you would earn a total of  117.00  from holding Global Strategist Portfolio or generate 6.27% return on investment over 90 days.

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

Global Strategist Portfolio  vs.  Core Fixed Income

Global Strategist

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Global Strategist Portfolio are ranked lower than 22 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Global Strategist may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Core Fixed Income

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Core Fixed Income are ranked lower than 15 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Core Fixed is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Global Strategist and Core Fixed

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

The idea behind Global Strategist Portfolio and Core Fixed Income 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.