Correlation Between Growth Strategy and Conquer Risk

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

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

Diversification Opportunities for Growth Strategy and Conquer Risk

0.98

Correlation Coefficient

Growth Strategy  Conquer Risk

Almost no diversification

The 3 months correlation between Growth and Conquer is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Growth Strategy Fund and Conquer Risk Managed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Conquer Risk Managed and Growth Strategy 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 Growth Strategy Fund are associated (or correlated) with Conquer Risk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Conquer Risk Managed has no effect on the direction of Growth Strategy i.e., Growth Strategy and Conquer Risk go up and down completely randomly.

Pair Corralation between Growth Strategy and Conquer Risk

Assuming the 90 days horizon Growth Strategy Fund is expected to generate 2.66 times more return on investment than Conquer Risk. However, Growth Strategy is 2.66 times more volatile than Conquer Risk Managed. It trades about 0.23 of its potential returns per unit of risk. Conquer Risk Managed is currently generating about 0.34 per unit of risk. If you would invest  1,280  in Growth Strategy Fund on May 27, 2025 and sell it today you would earn a total of  96.00  from holding Growth Strategy Fund or generate 7.5% return on investment over 90 days.

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

Growth Strategy Fund  vs.  Conquer Risk Managed

Growth Strategy

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Growth Strategy Fund are ranked lower than 18 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Growth Strategy may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Conquer Risk Managed

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Conquer Risk Managed are ranked lower than 26 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Conquer Risk is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Growth Strategy and Conquer Risk

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

The idea behind Growth Strategy Fund and Conquer Risk Managed 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.