Correlation Between Wilmington Funds and James Alpha

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

By analyzing existing cross correlation between Wilmington Funds and James Alpha Structured, you can compare the effects of market volatilities on Wilmington Funds and James Alpha 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 Wilmington Funds with a short position of James Alpha. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wilmington Funds and James Alpha.

Diversification Opportunities for Wilmington Funds and James Alpha

0.0

Correlation Coefficient

Wilmington Funds  James Alpha

Pay attention - limited upside

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

Pair Corralation between Wilmington Funds and James Alpha

If you would invest  1,002  in James Alpha Structured on December 27, 2024 and sell it today you would earn a total of  19.00  from holding James Alpha Structured or generate 1.9% return on investment over 90 days.

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

Wilmington Funds   vs.  James Alpha Structured

Wilmington Funds

Risk-Adjusted Performance

Very Weak

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

James Alpha Structured

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in James Alpha Structured are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, James Alpha is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Wilmington Funds and James Alpha

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

The idea behind Wilmington Funds and James Alpha Structured 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.