Correlation Between Issachar Fund and Deutsche European

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

By analyzing existing cross correlation between Issachar Fund Class and Deutsche European Equity, you can compare the effects of market volatilities on Issachar Fund and Deutsche European 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 Issachar Fund with a short position of Deutsche European. Check out your portfolio center. Please also check ongoing floating volatility patterns of Issachar Fund and Deutsche European.

Diversification Opportunities for Issachar Fund and Deutsche European

-0.69

Correlation Coefficient

Issachar Fund  Deutsche European

Excellent diversification

The 3 months correlation between Issachar and Deutsche is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Issachar Fund Class and Deutsche European Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deutsche European Equity and Issachar 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 Issachar Fund Class are associated (or correlated) with Deutsche European. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deutsche European Equity has no effect on the direction of Issachar Fund i.e., Issachar Fund and Deutsche European go up and down completely randomly.

Pair Corralation between Issachar Fund and Deutsche European

Assuming the 90 days horizon Issachar Fund Class is expected to under-perform the Deutsche European. In addition to that, Issachar Fund is 1.86 times more volatile than Deutsche European Equity. It trades about -0.05 of its total potential returns per unit of risk. Deutsche European Equity is currently generating about 0.12 per unit of volatility. If you would invest  1,249  in Deutsche European Equity on December 30, 2024 and sell it today you would earn a total of  79.00  from holding Deutsche European Equity or generate 6.33% return on investment over 90 days.

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

Issachar Fund Class  vs.  Deutsche European Equity

Issachar Fund Class

Risk-Adjusted Performance

Very Weak

Over the last 90 days Issachar Fund Class has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Issachar Fund is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Deutsche European Equity

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Deutsche European Equity are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Deutsche European may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Issachar Fund and Deutsche European

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

The idea behind Issachar Fund Class and Deutsche European 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.

Check out your portfolio center.

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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.