Correlation Between Moderate Strategy and Tfa Alphagen

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

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

Diversification Opportunities for Moderate Strategy and Tfa Alphagen

0.97

Correlation Coefficient

Moderate Strategy  Tfa Alphagen

Almost no diversification

The 3 months correlation between Moderate and Tfa is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Moderate Strategy Fund and Tfa Alphagen Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tfa Alphagen Growth and Moderate 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 Moderate Strategy Fund are associated (or correlated) with Tfa Alphagen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tfa Alphagen Growth has no effect on the direction of Moderate Strategy i.e., Moderate Strategy and Tfa Alphagen go up and down completely randomly.

Pair Corralation between Moderate Strategy and Tfa Alphagen

Assuming the 90 days horizon Moderate Strategy is expected to generate 2.47 times less return on investment than Tfa Alphagen. But when comparing it to its historical volatility, Moderate Strategy Fund is 2.25 times less risky than Tfa Alphagen. It trades about 0.21 of its potential returns per unit of risk. Tfa Alphagen Growth is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest  1,097  in Tfa Alphagen Growth on May 15, 2025 and sell it today you would earn a total of  120.00  from holding Tfa Alphagen Growth or generate 10.94% return on investment over 90 days.

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

Moderate Strategy Fund  vs.  Tfa Alphagen Growth

Moderate Strategy

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Moderate Strategy Fund are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Moderate Strategy is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Tfa Alphagen Growth

Risk-Adjusted Performance

Solid

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

Pair Trading with Moderate Strategy and Tfa Alphagen

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

The idea behind Moderate Strategy Fund and Tfa Alphagen Growth 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.