Correlation Between Sentinel Multi-asset and Praxis Genesis

Can any of the company-specific risk be diversified away by investing in both Sentinel Multi-asset and Praxis Genesis 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 Sentinel Multi-asset and Praxis Genesis into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Sentinel Multi Asset Income and Praxis Genesis Growth, you can compare the effects of market volatilities on Sentinel Multi-asset and Praxis Genesis 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 Sentinel Multi-asset with a short position of Praxis Genesis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sentinel Multi-asset and Praxis Genesis.

Diversification Opportunities for Sentinel Multi-asset and Praxis Genesis

0.73

Correlation Coefficient

Sentinel Multi-asset  Praxis Genesis

Poor diversification

The 3 months correlation between Sentinel and Praxis is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Sentinel Multi Asset Income and Praxis Genesis Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Praxis Genesis Growth and Sentinel Multi-asset 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 Sentinel Multi Asset Income are associated (or correlated) with Praxis Genesis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Praxis Genesis Growth has no effect on the direction of Sentinel Multi-asset i.e., Sentinel Multi-asset and Praxis Genesis go up and down completely randomly.

Pair Corralation between Sentinel Multi-asset and Praxis Genesis

Assuming the 90 days horizon Sentinel Multi-asset is expected to generate 1.18 times less return on investment than Praxis Genesis. In addition to that, Sentinel Multi-asset is 1.85 times more volatile than Praxis Genesis Growth. It trades about 0.07 of its total potential returns per unit of risk. Praxis Genesis Growth is currently generating about 0.16 per unit of volatility. If you would invest  2,059  in Praxis Genesis Growth on July 29, 2025 and sell it today you would earn a total of  119.00  from holding Praxis Genesis Growth or generate 5.78% return on investment over 90 days.

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

Sentinel Multi Asset Income  vs.  Praxis Genesis Growth

Sentinel Multi Asset

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Sentinel Multi Asset Income are ranked lower than 5 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Sentinel Multi-asset is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Praxis Genesis Growth

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Praxis Genesis Growth are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Praxis Genesis is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Sentinel Multi-asset and Praxis Genesis

The main advantage of trading using opposite Sentinel Multi-asset and Praxis Genesis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sentinel Multi-asset position performs unexpectedly, Praxis Genesis 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 Praxis Genesis will offset losses from the drop in Praxis Genesis' long position.

The idea behind Sentinel Multi Asset Income and Praxis Genesis 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.