Correlation Between One Rock and Lsv Conservative

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

By analyzing existing cross correlation between One Rock Fund and Lsv Servative Value, you can compare the effects of market volatilities on One Rock and Lsv Conservative 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 One Rock with a short position of Lsv Conservative. Check out your portfolio center. Please also check ongoing floating volatility patterns of One Rock and Lsv Conservative.

Diversification Opportunities for One Rock and Lsv Conservative

0.88

Correlation Coefficient

One Rock  Lsv Conservative

Very poor diversification

The 3 months correlation between One and Lsv is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding One Rock Fund and Lsv Servative Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lsv Servative Value and One Rock 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 One Rock Fund are associated (or correlated) with Lsv Conservative. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lsv Servative Value has no effect on the direction of One Rock i.e., One Rock and Lsv Conservative go up and down completely randomly.

Pair Corralation between One Rock and Lsv Conservative

Assuming the 90 days horizon One Rock Fund is expected to generate 2.12 times more return on investment than Lsv Conservative. However, One Rock is 2.12 times more volatile than Lsv Servative Value. It trades about 0.35 of its potential returns per unit of risk. Lsv Servative Value is currently generating about 0.12 per unit of risk. If you would invest  3,870  in One Rock Fund on May 7, 2025 and sell it today you would earn a total of  1,632  from holding One Rock Fund or generate 42.17% return on investment over 90 days.

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

One Rock Fund  vs.  Lsv Servative Value

One Rock Fund

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in One Rock Fund are ranked lower than 27 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, One Rock showed solid returns over the last few months and may actually be approaching a breakup point.

Lsv Servative Value

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Lsv Servative Value are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Lsv Conservative is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with One Rock and Lsv Conservative

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

The idea behind One Rock Fund and Lsv Servative Value 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.