Correlation Between RBB Fund and Soundwatch Hedged
Can any of the company-specific risk be diversified away by investing in both RBB Fund and Soundwatch Hedged 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 RBB Fund and Soundwatch Hedged into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The RBB Fund and Soundwatch Hedged Equity, you can compare the effects of market volatilities on RBB Fund and Soundwatch Hedged 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 RBB Fund with a short position of Soundwatch Hedged. Check out your portfolio center. Please also check ongoing floating volatility patterns of RBB Fund and Soundwatch Hedged.
Diversification Opportunities for RBB Fund and Soundwatch Hedged
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between RBB and Soundwatch is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding The RBB Fund and Soundwatch Hedged Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Soundwatch Hedged Equity and RBB Fund 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 The RBB Fund are associated (or correlated) with Soundwatch Hedged. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Soundwatch Hedged Equity has no effect on the direction of RBB Fund i.e., RBB Fund and Soundwatch Hedged go up and down completely randomly.
Pair Corralation between RBB Fund and Soundwatch Hedged
Given the investment horizon of 90 days The RBB Fund is expected to under-perform the Soundwatch Hedged. In addition to that, RBB Fund is 2.1 times more volatile than Soundwatch Hedged Equity. It trades about -0.16 of its total potential returns per unit of risk. Soundwatch Hedged Equity is currently generating about 0.11 per unit of volatility. If you would invest 3,085 in Soundwatch Hedged Equity on August 13, 2025 and sell it today you would earn a total of 95.00 from holding Soundwatch Hedged Equity or generate 3.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The RBB Fund vs. Soundwatch Hedged Equity
Performance |
| Timeline |
| RBB Fund |
| Soundwatch Hedged Equity |
RBB Fund and Soundwatch Hedged Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RBB Fund and Soundwatch Hedged
The main advantage of trading using opposite RBB Fund and Soundwatch Hedged positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RBB Fund position performs unexpectedly, Soundwatch Hedged 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 Soundwatch Hedged will offset losses from the drop in Soundwatch Hedged's long position.| RBB Fund vs. Ballast SmallMid Cap | RBB Fund vs. Humankind Benefit | RBB Fund vs. Essential 40 Stock | RBB Fund vs. LeaderSharesTM AlphaFactor Core |
| Soundwatch Hedged vs. AIM ETF Products | Soundwatch Hedged vs. AllianzIM Large Cap | Soundwatch Hedged vs. AIM ETF Products | Soundwatch Hedged vs. SPDR SP Telecom |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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