Correlation Between Stocksplus Fund and Commodityrealreturn

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

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

Diversification Opportunities for Stocksplus Fund and Commodityrealreturn

0.57

Correlation Coefficient

Stocksplus Fund  Commodityrealreturn

Very weak diversification

The 3 months correlation between Stocksplus and Commodityrealreturn is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Stocksplus Fund Institutional and Commodityrealreturn Strategy F in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Commodityrealreturn and Stocksplus 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 Stocksplus Fund Institutional are associated (or correlated) with Commodityrealreturn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Commodityrealreturn has no effect on the direction of Stocksplus Fund i.e., Stocksplus Fund and Commodityrealreturn go up and down completely randomly.

Pair Corralation between Stocksplus Fund and Commodityrealreturn

Assuming the 90 days horizon Stocksplus Fund Institutional is expected to generate 0.89 times more return on investment than Commodityrealreturn. However, Stocksplus Fund Institutional is 1.13 times less risky than Commodityrealreturn. It trades about 0.21 of its potential returns per unit of risk. Commodityrealreturn Strategy Fund is currently generating about 0.04 per unit of risk. If you would invest  1,257  in Stocksplus Fund Institutional on May 14, 2025 and sell it today you would earn a total of  112.00  from holding Stocksplus Fund Institutional or generate 8.91% return on investment over 90 days.

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

Stocksplus Fund Institutional  vs.  Commodityrealreturn Strategy F

Stocksplus Fund Inst

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Stocksplus Fund Institutional are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward-looking signals, Stocksplus Fund may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Commodityrealreturn

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Commodityrealreturn Strategy Fund are ranked lower than 2 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Commodityrealreturn is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Stocksplus Fund and Commodityrealreturn

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

The idea behind Stocksplus Fund Institutional and Commodityrealreturn Strategy Fund 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.