Correlation Between Champlain Small and Merk Hard
Can any of the company-specific risk be diversified away by investing in both Champlain Small and Merk Hard 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 Champlain Small and Merk Hard into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Champlain Small and Merk Hard Currency, you can compare the effects of market volatilities on Champlain Small and Merk Hard 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 Champlain Small with a short position of Merk Hard. Check out your portfolio center. Please also check ongoing floating volatility patterns of Champlain Small and Merk Hard.
Diversification Opportunities for Champlain Small and Merk Hard
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Champlain and Merk is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Champlain Small and Merk Hard Currency in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Merk Hard Currency and Champlain 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 Champlain Small are associated (or correlated) with Merk Hard. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Merk Hard Currency has no effect on the direction of Champlain Small i.e., Champlain Small and Merk Hard go up and down completely randomly.
Pair Corralation between Champlain Small and Merk Hard
If you would invest 2,132 in Champlain Small on September 3, 2024 and sell it today you would earn a total of 420.00 from holding Champlain Small or generate 19.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.68% |
| Values | Daily Returns |
Champlain Small vs. Merk Hard Currency
Performance |
| Timeline |
| Champlain Small |
| Merk Hard Currency |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Champlain Small and Merk Hard Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Champlain Small and Merk Hard
The main advantage of trading using opposite Champlain Small and Merk Hard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Champlain Small position performs unexpectedly, Merk Hard 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 Merk Hard will offset losses from the drop in Merk Hard's long position.| Champlain Small vs. The Hartford Midcap | Champlain Small vs. Mfs Emerging Markets | Champlain Small vs. Wells Fargo Special | Champlain Small vs. Washington Mutual Investors |
| Merk Hard vs. Us Small Cap | Merk Hard vs. Champlain Small | Merk Hard vs. Tax Managed Mid Small | Merk Hard vs. Touchstone 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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