Low Correlation SP Trader
With global economies now wound together ever tighter, it has become increasingly difficult to achieve adequate diversification with conventional stock and bond portfolios alone.
One way to diversify is to allocate a portion of capital to assets that are intrinsically uncorrelated by utilizing alternative investment strategies.
SP Trader Fund employs the foregoing approach – Trading futures that encompass a broad range of strategies.
The table to the right shows the correlation of an Investment Futures Growth Fund investment with various benchmark indices. Low correlations with all of the benchmarks reflect the uniqueness of SP Trader Fund’s multidimensional diversification approach.
The low correlation with the managed futures index highlights how SP Trader Fund’s multi-dimensional strategy stands apart from the typical trend-following approach used by most futures managers.
Correlation * SP Trader Fund to other Asset Groups
| US Stocks |
Bonds | World Stocks |
Hedge Funds |
Managed Futures |
|
| Investment Futures Fund | 0.21 |
0.18 |
0.10 |
0.11 |
0.24 |
US Stocks = Barra Standard & Poor 500 Index
Bonds = Lehman Stanley Capital National World Equity Index
World Stocks = Morgan Stanley Capital National World Equity Index
Hedge Funds = CSFB/Tremont Hedge Fund Index
Managed Futures = CSFB/Tremont Managed Fund Index
* Correlation ranges from a maximum of +0.1 to a minimum of -0.1. Two assets with perfect
correlation (+0.1) will tend to move simultaneously in the same direction, while a perfect negative
correlation (-0.1) implies returns which tend to move simultaneously in opposite direction. A
correlation of zero is theoretically ideal, but in practice a figure between -0.25
THESE PERFORMANCE TABLES AND RESULTS ARE FROM ACTUAL RESULTS OF SP TRADER FUND’S TRADING FOR THE PERIOD JAN ‘00- NOV ‘08