Correlation Between Commodities Strategy and Stringer Growth
Can any of the company-specific risk be diversified away by investing in both Commodities Strategy and Stringer Growth 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 Commodities Strategy and Stringer Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Commodities Strategy Fund and Stringer Growth Fund, you can compare the effects of market volatilities on Commodities Strategy and Stringer Growth 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 Commodities Strategy with a short position of Stringer Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Commodities Strategy and Stringer Growth.
Diversification Opportunities for Commodities Strategy and Stringer Growth
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Commodities and Stringer is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Commodities Strategy Fund and Stringer Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stringer Growth and Commodities 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 Commodities Strategy Fund are associated (or correlated) with Stringer Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stringer Growth has no effect on the direction of Commodities Strategy i.e., Commodities Strategy and Stringer Growth go up and down completely randomly.
Pair Corralation between Commodities Strategy and Stringer Growth
Assuming the 90 days horizon Commodities Strategy Fund is expected to generate 2.12 times more return on investment than Stringer Growth. However, Commodities Strategy is 2.12 times more volatile than Stringer Growth Fund. It trades about 0.14 of its potential returns per unit of risk. Stringer Growth Fund is currently generating about 0.25 per unit of risk. If you would invest 7,877 in Commodities Strategy Fund on April 30, 2025 and sell it today you would earn a total of 690.00 from holding Commodities Strategy Fund or generate 8.76% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Commodities Strategy Fund vs. Stringer Growth Fund
Performance |
Timeline |
Commodities Strategy |
Stringer Growth |
Commodities Strategy and Stringer Growth Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Commodities Strategy and Stringer Growth
The main advantage of trading using opposite Commodities Strategy and Stringer Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Commodities Strategy position performs unexpectedly, Stringer Growth 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 Stringer Growth will offset losses from the drop in Stringer Growth's long position.Commodities Strategy vs. James Balanced Golden | Commodities Strategy vs. Goldman Sachs International | Commodities Strategy vs. Goldman Sachs Clean | Commodities Strategy vs. Precious Metals And |
Stringer Growth vs. Rational Dividend Capture | Stringer Growth vs. Flakqx | Stringer Growth vs. Ips Strategic Capital | Stringer Growth vs. Abs Insights Emerging |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
AI Portfolio Prophet Use AI to generate optimal portfolios and find profitable investment opportunities | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |