Correlation Between Bruce Fund and Summit Global

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

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

Diversification Opportunities for Bruce Fund and Summit Global

0.9

Correlation Coefficient

Bruce Fund  Summit Global

Almost no diversification

The 3 months correlation between Bruce and Summit is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Bruce Fund Bruce and Summit Global Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Summit Global Investments and Bruce 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 Bruce Fund Bruce are associated (or correlated) with Summit Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Summit Global Investments has no effect on the direction of Bruce Fund i.e., Bruce Fund and Summit Global go up and down completely randomly.

Pair Corralation between Bruce Fund and Summit Global

Assuming the 90 days horizon Bruce Fund Bruce is expected to generate 0.4 times more return on investment than Summit Global. However, Bruce Fund Bruce is 2.49 times less risky than Summit Global. It trades about -0.11 of its potential returns per unit of risk. Summit Global Investments is currently generating about -0.14 per unit of risk. If you would invest  53,764  in Bruce Fund Bruce on October 8, 2024 and sell it today you would lose (3,755) from holding Bruce Fund Bruce or give up 6.98% of portfolio value over 90 days.

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

Bruce Fund Bruce  vs.  Summit Global Investments

Bruce Fund Bruce

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Bruce Fund Bruce 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.

Summit Global Investments

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Summit Global Investments has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's forward indicators remain fairly strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Pair Trading with Bruce Fund and Summit Global

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

The idea behind Bruce Fund Bruce and Summit Global Investments 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.