Correlation Between Cornerstone Strategic and Oakhurst Short
Can any of the company-specific risk be diversified away by investing in both Cornerstone Strategic and Oakhurst Short 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 Cornerstone Strategic and Oakhurst Short into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cornerstone Strategic Return and Oakhurst Short Duration, you can compare the effects of market volatilities on Cornerstone Strategic and Oakhurst Short 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 Cornerstone Strategic with a short position of Oakhurst Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cornerstone Strategic and Oakhurst Short.
Diversification Opportunities for Cornerstone Strategic and Oakhurst Short
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cornerstone and Oakhurst is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Cornerstone Strategic Return and Oakhurst Short Duration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oakhurst Short Duration and Cornerstone Strategic 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 Cornerstone Strategic Return are associated (or correlated) with Oakhurst Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oakhurst Short Duration has no effect on the direction of Cornerstone Strategic i.e., Cornerstone Strategic and Oakhurst Short go up and down completely randomly.
Pair Corralation between Cornerstone Strategic and Oakhurst Short
Considering the 90-day investment horizon Cornerstone Strategic Return is expected to generate 10.96 times more return on investment than Oakhurst Short. However, Cornerstone Strategic is 10.96 times more volatile than Oakhurst Short Duration. It trades about 0.06 of its potential returns per unit of risk. Oakhurst Short Duration is currently generating about 0.21 per unit of risk. If you would invest 651.00 in Cornerstone Strategic Return on September 12, 2024 and sell it today you would earn a total of 191.00 from holding Cornerstone Strategic Return or generate 29.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cornerstone Strategic Return vs. Oakhurst Short Duration
Performance |
| Timeline |
| Cornerstone Strategic |
| Oakhurst Short Duration |
Cornerstone Strategic and Oakhurst Short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cornerstone Strategic and Oakhurst Short
The main advantage of trading using opposite Cornerstone Strategic and Oakhurst Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cornerstone Strategic position performs unexpectedly, Oakhurst Short 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 Oakhurst Short will offset losses from the drop in Oakhurst Short's long position.| Cornerstone Strategic vs. Oxford Lane Capital | Cornerstone Strategic vs. Orchid Island Capital | Cornerstone Strategic vs. Guggenheim Strategic Opportunities | Cornerstone Strategic vs. Stone Harbor Emerging |
| Oakhurst Short vs. Barings Active Short | Oakhurst Short vs. Prudential Short Duration | Oakhurst Short vs. Old Westbury Short Term | Oakhurst Short vs. Siit Ultra Short |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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