Correlation Between Ruffer Investment and Impax Asset

Can any of the company-specific risk be diversified away by investing in both Ruffer Investment and Impax Asset 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 Ruffer Investment and Impax Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Ruffer Investment and Impax Asset Management, you can compare the effects of market volatilities on Ruffer Investment and Impax Asset 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 Ruffer Investment with a short position of Impax Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ruffer Investment and Impax Asset.

Diversification Opportunities for Ruffer Investment and Impax Asset

0.04

Correlation Coefficient

Ruffer Investment  Impax Asset

Significant diversification

The 3 months correlation between Ruffer and Impax is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Ruffer Investment and Impax Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Impax Asset Management and Ruffer Investment 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 Ruffer Investment are associated (or correlated) with Impax Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Impax Asset Management has no effect on the direction of Ruffer Investment i.e., Ruffer Investment and Impax Asset go up and down completely randomly.

Pair Corralation between Ruffer Investment and Impax Asset

Assuming the 90 days trading horizon Ruffer Investment is expected to generate 0.21 times more return on investment than Impax Asset. However, Ruffer Investment is 4.83 times less risky than Impax Asset. It trades about 0.07 of its potential returns per unit of risk. Impax Asset Management is currently generating about -0.01 per unit of risk. If you would invest  27,600  in Ruffer Investment on March 25, 2025 and sell it today you would earn a total of  850.00  from holding Ruffer Investment or generate 3.08% return on investment over 90 days.

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

Ruffer Investment  vs.  Impax Asset Management

Ruffer Investment

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Ruffer Investment are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Ruffer Investment is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Impax Asset Management

Risk-Adjusted Performance

Very Weak

Over the last 90 days Impax Asset Management has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Impax Asset is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Ruffer Investment and Impax Asset

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

The idea behind Ruffer Investment and Impax Asset Management 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.