Correlation Between Aston/crosswind Small and Cullen High
Can any of the company-specific risk be diversified away by investing in both Aston/crosswind Small and Cullen High 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 Aston/crosswind Small and Cullen High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Astoncrosswind Small Cap and Cullen High Dividend, you can compare the effects of market volatilities on Aston/crosswind Small and Cullen High 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 Aston/crosswind Small with a short position of Cullen High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aston/crosswind Small and Cullen High.
Diversification Opportunities for Aston/crosswind Small and Cullen High
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aston/crosswind and Cullen is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Astoncrosswind Small Cap and Cullen High Dividend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cullen High Dividend and Aston/crosswind Small 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 Astoncrosswind Small Cap are associated (or correlated) with Cullen High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cullen High Dividend has no effect on the direction of Aston/crosswind Small i.e., Aston/crosswind Small and Cullen High go up and down completely randomly.
Pair Corralation between Aston/crosswind Small and Cullen High
Assuming the 90 days horizon Astoncrosswind Small Cap is expected to generate 2.54 times more return on investment than Cullen High. However, Aston/crosswind Small is 2.54 times more volatile than Cullen High Dividend. It trades about 0.24 of its potential returns per unit of risk. Cullen High Dividend is currently generating about 0.07 per unit of risk. If you would invest 1,737 in Astoncrosswind Small Cap on August 30, 2024 and sell it today you would earn a total of 133.00 from holding Astoncrosswind Small Cap or generate 7.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Astoncrosswind Small Cap vs. Cullen High Dividend
Performance |
| Timeline |
| Astoncrosswind Small Cap |
| Cullen High Dividend |
Aston/crosswind Small and Cullen High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aston/crosswind Small and Cullen High
The main advantage of trading using opposite Aston/crosswind Small and Cullen High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aston/crosswind Small position performs unexpectedly, Cullen High 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 Cullen High will offset losses from the drop in Cullen High's long position.| Aston/crosswind Small vs. Baron Real Estate | Aston/crosswind Small vs. Eventide Gilead Fund | Aston/crosswind Small vs. Buffalo Emerging Opportunities | Aston/crosswind Small vs. Large Cap Growth |
| Cullen High vs. The Value Fund | Cullen High vs. Lazard Global Listed | Cullen High vs. Lazard International Strategic | Cullen High vs. Tcw Relative Value |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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