Correlation Between The Arbitrage and Cullen High
Can any of the company-specific risk be diversified away by investing in both The Arbitrage 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 The Arbitrage and Cullen High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Arbitrage Event Driven and Cullen High Dividend, you can compare the effects of market volatilities on The Arbitrage 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 The Arbitrage with a short position of Cullen High. Check out your portfolio center. Please also check ongoing floating volatility patterns of The Arbitrage and Cullen High.
Diversification Opportunities for The Arbitrage and Cullen High
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between The and Cullen is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding The Arbitrage Event Driven 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 The Arbitrage 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 The Arbitrage Event Driven 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 The Arbitrage i.e., The Arbitrage and Cullen High go up and down completely randomly.
Pair Corralation between The Arbitrage and Cullen High
Assuming the 90 days horizon The Arbitrage Event Driven is expected to under-perform the Cullen High. But the mutual fund apears to be less risky and, when comparing its historical volatility, The Arbitrage Event Driven is 1.85 times less risky than Cullen High. The mutual fund trades about -0.07 of its potential returns per unit of risk. The Cullen High Dividend is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 1,490 in Cullen High Dividend on September 2, 2024 and sell it today you would earn a total of 36.00 from holding Cullen High Dividend or generate 2.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Arbitrage Event Driven vs. Cullen High Dividend
Performance |
| Timeline |
| Arbitrage Event |
| Cullen High Dividend |
The Arbitrage and Cullen High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with The Arbitrage and Cullen High
The main advantage of trading using opposite The Arbitrage and Cullen High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if The Arbitrage 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.| The Arbitrage vs. The Arbitrage Fund | The Arbitrage vs. The Arbitrage Fund | The Arbitrage vs. The Arbitrage Fund | The Arbitrage vs. The Arbitrage Fund |
| 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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