Correlation Between Aston/crosswind Small and Cullen Small
Can any of the company-specific risk be diversified away by investing in both Aston/crosswind Small and Cullen Small 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 Small 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 Small Cap, you can compare the effects of market volatilities on Aston/crosswind Small and Cullen Small 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 Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aston/crosswind Small and Cullen Small.
Diversification Opportunities for Aston/crosswind Small and Cullen Small
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Aston/crosswind and Cullen is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Astoncrosswind Small Cap and Cullen Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cullen Small Cap 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 Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cullen Small Cap has no effect on the direction of Aston/crosswind Small i.e., Aston/crosswind Small and Cullen Small go up and down completely randomly.
Pair Corralation between Aston/crosswind Small and Cullen Small
Assuming the 90 days horizon Astoncrosswind Small Cap is expected to generate 0.8 times more return on investment than Cullen Small. However, Astoncrosswind Small Cap is 1.26 times less risky than Cullen Small. It trades about 0.31 of its potential returns per unit of risk. Cullen Small Cap is currently generating about 0.24 per unit of risk. If you would invest 1,711 in Astoncrosswind Small Cap on September 2, 2024 and sell it today you would earn a total of 159.00 from holding Astoncrosswind Small Cap or generate 9.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Astoncrosswind Small Cap vs. Cullen Small Cap
Performance |
| Timeline |
| Astoncrosswind Small Cap |
| Cullen Small Cap |
Aston/crosswind Small and Cullen Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aston/crosswind Small and Cullen Small
The main advantage of trading using opposite Aston/crosswind Small and Cullen Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aston/crosswind Small position performs unexpectedly, Cullen Small 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 Small will offset losses from the drop in Cullen Small'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 Small vs. Lifestyle Ii Moderate | Cullen Small vs. Dimensional Retirement Income | Cullen Small vs. Franklin Lifesmart Retirement | Cullen Small vs. Calvert Moderate Allocation |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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