Correlation Between Cullen High and Virtus Emerging
Can any of the company-specific risk be diversified away by investing in both Cullen High and Virtus Emerging 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 Cullen High and Virtus Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cullen High Dividend and Virtus Emerging Markets, you can compare the effects of market volatilities on Cullen High and Virtus Emerging 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 Cullen High with a short position of Virtus Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cullen High and Virtus Emerging.
Diversification Opportunities for Cullen High and Virtus Emerging
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Cullen and Virtus is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Cullen High Dividend and Virtus Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Virtus Emerging Markets and Cullen High 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 Cullen High Dividend are associated (or correlated) with Virtus Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Virtus Emerging Markets has no effect on the direction of Cullen High i.e., Cullen High and Virtus Emerging go up and down completely randomly.
Pair Corralation between Cullen High and Virtus Emerging
Assuming the 90 days horizon Cullen High Dividend is expected to generate 0.96 times more return on investment than Virtus Emerging. However, Cullen High Dividend is 1.04 times less risky than Virtus Emerging. It trades about 0.08 of its potential returns per unit of risk. Virtus Emerging Markets is currently generating about 0.07 per unit of risk. If you would invest 1,282 in Cullen High Dividend on September 2, 2024 and sell it today you would earn a total of 244.00 from holding Cullen High Dividend or generate 19.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cullen High Dividend vs. Virtus Emerging Markets
Performance |
| Timeline |
| Cullen High Dividend |
| Virtus Emerging Markets |
Cullen High and Virtus Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cullen High and Virtus Emerging
The main advantage of trading using opposite Cullen High and Virtus Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cullen High position performs unexpectedly, Virtus Emerging 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 Virtus Emerging will offset losses from the drop in Virtus Emerging's long position.| Cullen High vs. The Value Fund | Cullen High vs. Lazard Global Listed | Cullen High vs. Lazard International Strategic | Cullen High vs. Tcw Relative Value |
| Virtus Emerging vs. Virtus International Small Cap | Virtus Emerging vs. International Advantage Portfolio | Virtus Emerging vs. Artisan Developing World | Virtus Emerging vs. Virtus Kar Small Cap |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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