Correlation Between Rbb Fund and Brinker Capital

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

By analyzing existing cross correlation between Rbb Fund Trust and Brinker Capital Destinations, you can compare the effects of market volatilities on Rbb Fund and Brinker Capital 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 Rbb Fund with a short position of Brinker Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rbb Fund and Brinker Capital.

Diversification Opportunities for Rbb Fund and Brinker Capital

0.09

Correlation Coefficient

Rbb Fund  Brinker Capital

Significant diversification

The 3 months correlation between Rbb and Brinker is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Rbb Fund Trust and Brinker Capital Destinations in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brinker Capital Dest and Rbb 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 Rbb Fund Trust are associated (or correlated) with Brinker Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brinker Capital Dest has no effect on the direction of Rbb Fund i.e., Rbb Fund and Brinker Capital go up and down completely randomly.

Pair Corralation between Rbb Fund and Brinker Capital

Assuming the 90 days horizon Rbb Fund Trust is expected to generate 1.04 times more return on investment than Brinker Capital. However, Rbb Fund is 1.04 times more volatile than Brinker Capital Destinations. It trades about 0.14 of its potential returns per unit of risk. Brinker Capital Destinations is currently generating about -0.09 per unit of risk. If you would invest  1,069  in Rbb Fund Trust on December 20, 2024 and sell it today you would earn a total of  67.00  from holding Rbb Fund Trust or generate 6.27% return on investment over 90 days.

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

Rbb Fund Trust  vs.  Brinker Capital Destinations

Rbb Fund Trust

Risk-Adjusted Performance

Modest

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

Brinker Capital Dest

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Rbb Fund and Brinker Capital

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

The idea behind Rbb Fund Trust and Brinker Capital Destinations 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.