Correlation Between Cardinal Small and Value Fund
Can any of the company-specific risk be diversified away by investing in both Cardinal Small and Value Fund 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 Cardinal Small and Value Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cardinal Small Cap and Value Fund A, you can compare the effects of market volatilities on Cardinal Small and Value Fund 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 Cardinal Small with a short position of Value Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cardinal Small and Value Fund.
Diversification Opportunities for Cardinal Small and Value Fund
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cardinal and Value is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Cardinal Small Cap and Value Fund A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Value Fund A and Cardinal 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 Cardinal Small Cap are associated (or correlated) with Value Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Value Fund A has no effect on the direction of Cardinal Small i.e., Cardinal Small and Value Fund go up and down completely randomly.
Pair Corralation between Cardinal Small and Value Fund
If you would invest 1,444 in Cardinal Small Cap on September 13, 2024 and sell it today you would earn a total of 0.00 from holding Cardinal Small Cap or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cardinal Small Cap vs. Value Fund A
Performance |
| Timeline |
| Cardinal Small Cap |
| Value Fund A |
Cardinal Small and Value Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cardinal Small and Value Fund
The main advantage of trading using opposite Cardinal Small and Value Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cardinal Small position performs unexpectedly, Value Fund 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 Value Fund will offset losses from the drop in Value Fund's long position.| Cardinal Small vs. New Economy Fund | Cardinal Small vs. Vanguard Growth Index | Cardinal Small vs. Fidelity Trend Fund | Cardinal Small vs. Kinetics Paradigm Fund |
| Value Fund vs. Pace Smallmedium Value | Value Fund vs. Cardinal Small Cap | Value Fund vs. Ab Small Cap | Value Fund vs. Champlain Small |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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