Correlation Between Issachar Fund and Real Assets

Can any of the company-specific risk be diversified away by investing in both Issachar Fund and Real Assets 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 Real Assets 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 Real Assets Portfolio, you can compare the effects of market volatilities on Issachar Fund and Real Assets 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 Real Assets. Check out your portfolio center. Please also check ongoing floating volatility patterns of Issachar Fund and Real Assets.

Diversification Opportunities for Issachar Fund and Real Assets

-0.71

Correlation Coefficient

Issachar Fund  Real Assets

Pay attention - limited upside

The 3 months correlation between Issachar and Real is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Issachar Fund Class and Real Assets Portfolio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Real Assets Portfolio 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 Real Assets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Real Assets Portfolio has no effect on the direction of Issachar Fund i.e., Issachar Fund and Real Assets go up and down completely randomly.

Pair Corralation between Issachar Fund and Real Assets

Assuming the 90 days horizon Issachar Fund Class is expected to under-perform the Real Assets. In addition to that, Issachar Fund is 4.19 times more volatile than Real Assets Portfolio. It trades about -0.05 of its total potential returns per unit of risk. Real Assets Portfolio is currently generating about 0.39 per unit of volatility. If you would invest  974.00  in Real Assets Portfolio on December 29, 2024 and sell it today you would earn a total of  89.00  from holding Real Assets Portfolio or generate 9.14% 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.  Real Assets Portfolio

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.

Real Assets Portfolio

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Real Assets Portfolio are ranked lower than 30 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Real Assets may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Issachar Fund and Real Assets

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

The idea behind Issachar Fund Class and Real Assets Portfolio 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 Stocks Directory module to find actively traded stocks across global markets.