Correlation Between Pacific Funds and Tarkio Fund

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

By analyzing existing cross correlation between Pacific Funds Small Cap and Tarkio Fund Tarkio, you can compare the effects of market volatilities on Pacific Funds and Tarkio Fund 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 Pacific Funds with a short position of Tarkio Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pacific Funds and Tarkio Fund.

Diversification Opportunities for Pacific Funds and Tarkio Fund

0.0

Correlation Coefficient

Pacific Funds  Tarkio Fund

Pay attention - limited upside

The 3 months correlation between Pacific and Tarkio is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Pacific Funds Small Cap and Tarkio Fund Tarkio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tarkio Fund Tarkio and Pacific Funds 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 Pacific Funds Small Cap are associated (or correlated) with Tarkio Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tarkio Fund Tarkio has no effect on the direction of Pacific Funds i.e., Pacific Funds and Tarkio Fund go up and down completely randomly.

Pair Corralation between Pacific Funds and Tarkio Fund

If you would invest (100.00) in Pacific Funds Small Cap on December 1, 2024 and sell it today you would earn a total of  100.00  from holding Pacific Funds Small Cap or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Pacific Funds Small Cap  vs.  Tarkio Fund Tarkio

Pacific Funds Small

Risk-Adjusted Performance

Very Weak

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

Tarkio Fund Tarkio

Risk-Adjusted Performance

Very Weak

Over the last 90 days Tarkio Fund Tarkio 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-looking signals remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Pair Trading with Pacific Funds and Tarkio Fund

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

The idea behind Pacific Funds Small Cap and Tarkio Fund Tarkio 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.