Correlation Between PICTON Credit and IProfile Fixed

Can any of the company-specific risk be diversified away by investing in both PICTON Credit and IProfile Fixed 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 PICTON Credit and IProfile Fixed into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between PICTON Credit Opportunities and iProfile Fixed Income, you can compare the effects of market volatilities on PICTON Credit and IProfile Fixed 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 PICTON Credit with a short position of IProfile Fixed. Check out your portfolio center. Please also check ongoing floating volatility patterns of PICTON Credit and IProfile Fixed.

Diversification Opportunities for PICTON Credit and IProfile Fixed

-0.36

Correlation Coefficient

PICTON Credit  IProfile Fixed

Very good diversification

The 3 months correlation between PICTON and IProfile is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding PICTON Credit Opportunities and iProfile Fixed Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iProfile Fixed Income and PICTON Credit 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 PICTON Credit Opportunities are associated (or correlated) with IProfile Fixed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iProfile Fixed Income has no effect on the direction of PICTON Credit i.e., PICTON Credit and IProfile Fixed go up and down completely randomly.

Pair Corralation between PICTON Credit and IProfile Fixed

Assuming the 90 days trading horizon PICTON Credit Opportunities is expected to generate 1.84 times more return on investment than IProfile Fixed. However, PICTON Credit is 1.84 times more volatile than iProfile Fixed Income. It trades about 0.12 of its potential returns per unit of risk. iProfile Fixed Income is currently generating about -0.03 per unit of risk. If you would invest  938.00  in PICTON Credit Opportunities on April 23, 2025 and sell it today you would earn a total of  27.00  from holding PICTON Credit Opportunities or generate 2.88% return on investment over 90 days.

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

PICTON Credit Opportunities  vs.  iProfile Fixed Income

PICTON Credit Opport

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in PICTON Credit Opportunities are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of very healthy basic indicators, PICTON Credit is not utilizing all of its potentials. The new stock price disarray, may contribute to short-term losses for the investors.

iProfile Fixed Income

Risk-Adjusted Performance

Very Weak

Over the last 90 days iProfile Fixed Income has generated negative risk-adjusted returns adding no value to fund investors. Despite quite persistent essential indicators, IProfile Fixed is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with PICTON Credit and IProfile Fixed

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

The idea behind PICTON Credit Opportunities and iProfile Fixed Income 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.