Correlation Between Lifex Inflation and Champlain Small

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

By analyzing existing cross correlation between Lifex Inflation Protected Income and Champlain Small, you can compare the effects of market volatilities on Lifex Inflation and Champlain Small 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 Lifex Inflation with a short position of Champlain Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lifex Inflation and Champlain Small.

Diversification Opportunities for Lifex Inflation and Champlain Small

-0.85

Correlation Coefficient

Lifex Inflation  Champlain Small

Pay attention - limited upside

The 3 months correlation between Lifex and Champlain is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Lifex Inflation Protected Inco and Champlain Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Champlain Small and Lifex Inflation 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 Lifex Inflation Protected Income are associated (or correlated) with Champlain Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Champlain Small has no effect on the direction of Lifex Inflation i.e., Lifex Inflation and Champlain Small go up and down completely randomly.

Pair Corralation between Lifex Inflation and Champlain Small

If you would invest  2,440  in Champlain Small on September 16, 2024 and sell it today you would earn a total of  111.00  from holding Champlain Small or generate 4.55% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	9.52%
Values	Daily Returns

Lifex Inflation Protected Inco  vs.  Champlain Small

Lifex Inflation Prot

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Lifex Inflation Protected Income has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's primary indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Champlain Small

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Champlain Small are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Champlain Small may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Lifex Inflation and Champlain Small

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

The idea behind Lifex Inflation Protected Income and Champlain Small 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.