Correlation Between Cullen Small and Aston/crosswind Small
Can any of the company-specific risk be diversified away by investing in both Cullen Small and Aston/crosswind Small 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 Small and Aston/crosswind Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cullen Small Cap and Astoncrosswind Small Cap, you can compare the effects of market volatilities on Cullen Small and Aston/crosswind Small 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 Small with a short position of Aston/crosswind Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cullen Small and Aston/crosswind Small.
Diversification Opportunities for Cullen Small and Aston/crosswind Small
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Cullen and Aston/Crosswind is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Cullen Small Cap and Astoncrosswind Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astoncrosswind Small Cap and Cullen 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 Cullen Small Cap are associated (or correlated) with Aston/crosswind Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astoncrosswind Small Cap has no effect on the direction of Cullen Small i.e., Cullen Small and Aston/crosswind Small go up and down completely randomly.
Pair Corralation between Cullen Small and Aston/crosswind Small
Assuming the 90 days horizon Cullen Small is expected to generate 1.62 times less return on investment than Aston/crosswind Small. In addition to that, Cullen Small is 1.43 times more volatile than Astoncrosswind Small Cap. It trades about 0.03 of its total potential returns per unit of risk. Astoncrosswind Small Cap is currently generating about 0.07 per unit of volatility. If you would invest 1,372 in Astoncrosswind Small Cap on November 28, 2024 and sell it today you would earn a total of 325.00 from holding Astoncrosswind Small Cap or generate 23.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cullen Small Cap vs. Astoncrosswind Small Cap
Performance |
| Timeline |
| Cullen Small Cap |
| Astoncrosswind Small Cap |
Cullen Small and Aston/crosswind Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cullen Small and Aston/crosswind Small
The main advantage of trading using opposite Cullen Small and Aston/crosswind Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cullen Small position performs unexpectedly, Aston/crosswind Small 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 Aston/crosswind Small will offset losses from the drop in Aston/crosswind Small's long position.| Cullen Small vs. Touchstone Sands Capital | Cullen Small vs. T Rowe Price | Cullen Small vs. The Hartford International | Cullen Small vs. Jpmorgan Large Cap |
| Aston/crosswind Small vs. Baron Real Estate | Aston/crosswind Small vs. Eventide Gilead Fund | Aston/crosswind Small vs. Buffalo Emerging Opportunities | Aston/crosswind Small vs. Large Cap Growth |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |