Correlation Between Locorr Market and Stringer Growth
Can any of the company-specific risk be diversified away by investing in both Locorr Market and Stringer Growth 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 Locorr Market and Stringer Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Locorr Market Trend and Stringer Growth Fund, you can compare the effects of market volatilities on Locorr Market and Stringer Growth 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 Locorr Market with a short position of Stringer Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Locorr Market and Stringer Growth.
Diversification Opportunities for Locorr Market and Stringer Growth
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Locorr and Stringer is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Locorr Market Trend and Stringer Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stringer Growth and Locorr Market 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 Locorr Market Trend are associated (or correlated) with Stringer Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stringer Growth has no effect on the direction of Locorr Market i.e., Locorr Market and Stringer Growth go up and down completely randomly.
Pair Corralation between Locorr Market and Stringer Growth
Assuming the 90 days horizon Locorr Market Trend is expected to generate 1.22 times more return on investment than Stringer Growth. However, Locorr Market is 1.22 times more volatile than Stringer Growth Fund. It trades about 0.12 of its potential returns per unit of risk. Stringer Growth Fund is currently generating about 0.08 per unit of risk. If you would invest 1,061 in Locorr Market Trend on September 7, 2025 and sell it today you would earn a total of 65.00 from holding Locorr Market Trend or generate 6.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Locorr Market Trend vs. Stringer Growth Fund
Performance |
| Timeline |
| Locorr Market Trend |
| Stringer Growth |
Locorr Market and Stringer Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Locorr Market and Stringer Growth
The main advantage of trading using opposite Locorr Market and Stringer Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Locorr Market position performs unexpectedly, Stringer Growth 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 Stringer Growth will offset losses from the drop in Stringer Growth's long position.| Locorr Market vs. Vanguard Short Term Bond | Locorr Market vs. Federated Municipal High | Locorr Market vs. Old Westbury Fixed | Locorr Market vs. Alliancebernstein National Municipalome |
| Stringer Growth vs. Stringer Growth Fund | Stringer Growth vs. Stringer Growth Fund | Stringer Growth vs. Fidelity Freedom Index | Stringer Growth vs. Pimco Floating Income |
Check out your portfolio center.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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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