Correlation Between Aristotle Funds and Aristotle International

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Can any of the company-specific risk be diversified away by investing in both Aristotle Funds and Aristotle International 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 Aristotle Funds and Aristotle International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aristotle Funds Series and Aristotle International Equity, you can compare the effects of market volatilities on Aristotle Funds and Aristotle International 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 Aristotle Funds with a short position of Aristotle International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aristotle Funds and Aristotle International.

Diversification Opportunities for Aristotle Funds and Aristotle International

AristotleAristotleDiversified AwayAristotleAristotleDiversified Away100%
0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Aristotle and Aristotle is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aristotle Funds Series and Aristotle International Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aristotle International and Aristotle Funds 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 Aristotle Funds Series are associated (or correlated) with Aristotle International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aristotle International has no effect on the direction of Aristotle Funds i.e., Aristotle Funds and Aristotle International go up and down completely randomly.

Pair Corralation between Aristotle Funds and Aristotle International

If you would invest  0.00  in Aristotle Funds Series on October 7, 2024 and sell it today you would earn a total of  0.00  from holding Aristotle Funds Series or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy1.59%
ValuesDaily Returns

Aristotle Funds Series  vs.  Aristotle International Equity

 Performance 
JavaScript chart by amCharts 3.21.15OctNovDec -6-4-20
JavaScript chart by amCharts 3.21.15ARAHX AIFFX
       Timeline  
Aristotle Funds Series 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Weak
Over the last 90 days Aristotle Funds Series has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong technical indicators, Aristotle Funds is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Aristotle International 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Aristotle International Equity has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's technical and fundamental indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan13.613.81414.214.414.614.8

Aristotle Funds and Aristotle International Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-3.31-2.48-1.65-0.820.01410.851.72.543.39 0.20.40.60.8
JavaScript chart by amCharts 3.21.15ARAHX AIFFX
       Returns  

Pair Trading with Aristotle Funds and Aristotle International

The main advantage of trading using opposite Aristotle Funds and Aristotle International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aristotle Funds position performs unexpectedly, Aristotle International 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 Aristotle International will offset losses from the drop in Aristotle International's long position.
The idea behind Aristotle Funds Series and Aristotle International Equity 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.

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