Correlation Between Performance Trust and Commodities Strategy
Can any of the company-specific risk be diversified away by investing in both Performance Trust and Commodities Strategy 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 Performance Trust and Commodities Strategy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Performance Trust Municipal and Commodities Strategy Fund, you can compare the effects of market volatilities on Performance Trust and Commodities Strategy 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 Performance Trust with a short position of Commodities Strategy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Performance Trust and Commodities Strategy.
Diversification Opportunities for Performance Trust and Commodities Strategy
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Performance and Commodities is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Performance Trust Municipal and Commodities Strategy Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Commodities Strategy and Performance Trust 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 Performance Trust Municipal are associated (or correlated) with Commodities Strategy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Commodities Strategy has no effect on the direction of Performance Trust i.e., Performance Trust and Commodities Strategy go up and down completely randomly.
Pair Corralation between Performance Trust and Commodities Strategy
Assuming the 90 days horizon Performance Trust Municipal is expected to generate 0.2 times more return on investment than Commodities Strategy. However, Performance Trust Municipal is 4.96 times less risky than Commodities Strategy. It trades about 0.41 of its potential returns per unit of risk. Commodities Strategy Fund is currently generating about 0.02 per unit of risk. If you would invest 2,180 in Performance Trust Municipal on August 27, 2025 and sell it today you would earn a total of 101.00 from holding Performance Trust Municipal or generate 4.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Performance Trust Municipal vs. Commodities Strategy Fund
Performance |
| Timeline |
| Performance Trust |
| Commodities Strategy |
Performance Trust and Commodities Strategy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Performance Trust and Commodities Strategy
The main advantage of trading using opposite Performance Trust and Commodities Strategy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Performance Trust position performs unexpectedly, Commodities Strategy 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 Commodities Strategy will offset losses from the drop in Commodities Strategy's long position.| Performance Trust vs. Artisan Select Equity | Performance Trust vs. Sei Insti Mgd | Performance Trust vs. Summit Global Investments | Performance Trust vs. Rbc Emerging Markets |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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