Correlation Between Tfa Alphagen and International Investors

Can any of the company-specific risk be diversified away by investing in both Tfa Alphagen and International Investors 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 Tfa Alphagen and International Investors into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Tfa Alphagen Growth and International Investors Gold, you can compare the effects of market volatilities on Tfa Alphagen and International Investors 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 Tfa Alphagen with a short position of International Investors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tfa Alphagen and International Investors.

Diversification Opportunities for Tfa Alphagen and International Investors

-0.33

Correlation Coefficient

Tfa Alphagen  International Investors

Very good diversification

The 3 months correlation between Tfa and International is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Tfa Alphagen Growth and International Investors Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Investors and Tfa Alphagen 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 Tfa Alphagen Growth are associated (or correlated) with International Investors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Investors has no effect on the direction of Tfa Alphagen i.e., Tfa Alphagen and International Investors go up and down completely randomly.

Pair Corralation between Tfa Alphagen and International Investors

Assuming the 90 days horizon Tfa Alphagen Growth is expected to under-perform the International Investors. But the mutual fund apears to be less risky and, when comparing its historical volatility, Tfa Alphagen Growth is 1.27 times less risky than International Investors. The mutual fund trades about -0.08 of its potential returns per unit of risk. The International Investors Gold is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest  1,463  in International Investors Gold on December 30, 2024 and sell it today you would earn a total of  512.00  from holding International Investors Gold or generate 35.0% return on investment over 90 days.

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

Tfa Alphagen Growth  vs.  International Investors Gold

Tfa Alphagen Growth

Risk-Adjusted Performance

Very Weak

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

International Investors

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in International Investors Gold are ranked lower than 24 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, International Investors showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Tfa Alphagen and International Investors

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

The idea behind Tfa Alphagen Growth and International Investors Gold 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 Anywhere module to track or share privately all of your investments from the convenience of any device.