Correlation Between Tocqueville Fund and Balanced Fund

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

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

Diversification Opportunities for Tocqueville Fund and Balanced Fund

0.97

Correlation Coefficient

Tocqueville Fund  Balanced Fund

Almost no diversification

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

Pair Corralation between Tocqueville Fund and Balanced Fund

Assuming the 90 days horizon The Tocqueville Fund is expected to generate 1.55 times more return on investment than Balanced Fund. However, Tocqueville Fund is 1.55 times more volatile than Balanced Fund Retail. It trades about 0.34 of its potential returns per unit of risk. Balanced Fund Retail is currently generating about 0.26 per unit of risk. If you would invest  4,483  in The Tocqueville Fund on May 1, 2025 and sell it today you would earn a total of  731.00  from holding The Tocqueville Fund or generate 16.31% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	98.39%
Values	Daily Returns

The Tocqueville Fund  vs.  Balanced Fund Retail

Tocqueville Fund

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in The Tocqueville Fund are ranked lower than 26 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Tocqueville Fund showed solid returns over the last few months and may actually be approaching a breakup point.

Balanced Fund Retail

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Balanced Fund Retail are ranked lower than 20 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Balanced Fund may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Tocqueville Fund and Balanced Fund

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

The idea behind The Tocqueville Fund and Balanced Fund Retail 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.