Correlation Between Tri Continental and Munivest Fund

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

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

Diversification Opportunities for Tri Continental and Munivest Fund

0.33

Correlation Coefficient

Tri Continental  Munivest Fund

Weak diversification

The 3 months correlation between Tri and Munivest is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Tri Continental Closed and Munivest Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Munivest Fund and Tri Continental 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 Tri Continental Closed are associated (or correlated) with Munivest Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Munivest Fund has no effect on the direction of Tri Continental i.e., Tri Continental and Munivest Fund go up and down completely randomly.

Pair Corralation between Tri Continental and Munivest Fund

Allowing for the 90-day total investment horizon Tri Continental Closed is expected to under-perform the Munivest Fund. In addition to that, Tri Continental is 2.52 times more volatile than Munivest Fund. It trades about -0.06 of its total potential returns per unit of risk. Munivest Fund is currently generating about -0.02 per unit of volatility. If you would invest  692.00  in Munivest Fund on October 8, 2025 and sell it today you would lose (3.00) from holding Munivest Fund or give up 0.43% of portfolio value over 90 days.

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

Tri Continental Closed  vs.  Munivest Fund

Tri Continental Closed

Risk-Adjusted Performance

Weakest

Over the last 90 days Tri Continental Closed has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Tri Continental is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Munivest Fund

Risk-Adjusted Performance

Weakest

Over the last 90 days Munivest Fund has generated negative risk-adjusted returns adding no value to fund investors. Despite nearly stable basic indicators, Munivest Fund is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Tri Continental and Munivest Fund

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

The idea behind Tri Continental Closed and Munivest Fund 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.