Correlation Between Crawford Multi-asset and Crawford Dividend
Can any of the company-specific risk be diversified away by investing in both Crawford Multi-asset and Crawford Dividend 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 Crawford Multi-asset and Crawford Dividend into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Crawford Multi Asset Income and Crawford Dividend Growth, you can compare the effects of market volatilities on Crawford Multi-asset and Crawford Dividend 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 Crawford Multi-asset with a short position of Crawford Dividend. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crawford Multi-asset and Crawford Dividend.
Diversification Opportunities for Crawford Multi-asset and Crawford Dividend
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Crawford and Crawford is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Crawford Multi Asset Income and Crawford Dividend Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crawford Dividend Growth and Crawford Multi-asset 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 Crawford Multi Asset Income are associated (or correlated) with Crawford Dividend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crawford Dividend Growth has no effect on the direction of Crawford Multi-asset i.e., Crawford Multi-asset and Crawford Dividend go up and down completely randomly.
Pair Corralation between Crawford Multi-asset and Crawford Dividend
Assuming the 90 days horizon Crawford Multi-asset is expected to generate 1.05 times less return on investment than Crawford Dividend. But when comparing it to its historical volatility, Crawford Multi Asset Income is 1.31 times less risky than Crawford Dividend. It trades about 0.12 of its potential returns per unit of risk. Crawford Dividend Growth is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,253 in Crawford Dividend Growth on September 1, 2024 and sell it today you would earn a total of 306.00 from holding Crawford Dividend Growth or generate 24.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.73% |
| Values | Daily Returns |
Crawford Multi Asset Income vs. Crawford Dividend Growth
Performance |
| Timeline |
| Crawford Multi Asset |
| Crawford Dividend Growth |
Crawford Multi-asset and Crawford Dividend Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Crawford Multi-asset and Crawford Dividend
The main advantage of trading using opposite Crawford Multi-asset and Crawford Dividend positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crawford Multi-asset position performs unexpectedly, Crawford Dividend 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 Crawford Dividend will offset losses from the drop in Crawford Dividend's long position.| Crawford Multi-asset vs. Aqr Long Short Equity | Crawford Multi-asset vs. Pnc Emerging Markets | Crawford Multi-asset vs. Barings Emerging Markets | Crawford Multi-asset vs. Ep Emerging Markets |
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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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