Correlation Between Performance Trust and Fam Value

Can any of the company-specific risk be diversified away by investing in both Performance Trust and Fam Value 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 Fam Value 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 Fam Value Fund, you can compare the effects of market volatilities on Performance Trust and Fam Value 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 Fam Value. Check out your portfolio center. Please also check ongoing floating volatility patterns of Performance Trust and Fam Value.

Diversification Opportunities for Performance Trust and Fam Value

-0.63

Correlation Coefficient

Performance Trust  Fam Value

Excellent diversification

The 3 months correlation between Performance and Fam is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Performance Trust Municipal and Fam Value Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fam Value Fund 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 Fam Value. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fam Value Fund has no effect on the direction of Performance Trust i.e., Performance Trust and Fam Value go up and down completely randomly.

Pair Corralation between Performance Trust and Fam Value

Assuming the 90 days horizon Performance Trust Municipal is expected to generate 0.17 times more return on investment than Fam Value. However, Performance Trust Municipal is 5.88 times less risky than Fam Value. It trades about 0.34 of its potential returns per unit of risk. Fam Value Fund is currently generating about 0.01 per unit of risk. If you would invest  2,210  in Performance Trust Municipal on September 6, 2025 and sell it today you would earn a total of  67.00  from holding Performance Trust Municipal or generate 3.03% return on investment over 90 days.

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

Performance Trust Municipal  vs.  Fam Value Fund

Performance Trust

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Performance Trust Municipal are ranked lower than 27 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong primary indicators, Performance Trust is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Fam Value Fund

Risk-Adjusted Performance

Weakest

Compared to the overall equity markets, risk-adjusted returns on investments in Fam Value Fund are ranked lower than 1 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Fam Value is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Performance Trust and Fam Value

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

The idea behind Performance Trust Municipal and Fam Value Fund 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.

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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.