Correlation Between Cullen Value and Cullen Enhanced
Can any of the company-specific risk be diversified away by investing in both Cullen Value and Cullen Enhanced 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 Value and Cullen Enhanced into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cullen Value Fund and Cullen Enhanced Equity, you can compare the effects of market volatilities on Cullen Value and Cullen Enhanced 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 Value with a short position of Cullen Enhanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cullen Value and Cullen Enhanced.
Diversification Opportunities for Cullen Value and Cullen Enhanced
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Cullen and Cullen is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Cullen Value Fund and Cullen Enhanced Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cullen Enhanced Equity and Cullen Value 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 Value Fund are associated (or correlated) with Cullen Enhanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cullen Enhanced Equity has no effect on the direction of Cullen Value i.e., Cullen Value and Cullen Enhanced go up and down completely randomly.
Pair Corralation between Cullen Value and Cullen Enhanced
Assuming the 90 days horizon Cullen Value Fund is expected to generate 1.45 times more return on investment than Cullen Enhanced. However, Cullen Value is 1.45 times more volatile than Cullen Enhanced Equity. It trades about 0.2 of its potential returns per unit of risk. Cullen Enhanced Equity is currently generating about 0.27 per unit of risk. If you would invest 1,425 in Cullen Value Fund on August 30, 2024 and sell it today you would earn a total of 50.00 from holding Cullen Value Fund or generate 3.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cullen Value Fund vs. Cullen Enhanced Equity
Performance |
| Timeline |
| Cullen Value |
| Cullen Enhanced Equity |
Cullen Value and Cullen Enhanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cullen Value and Cullen Enhanced
The main advantage of trading using opposite Cullen Value and Cullen Enhanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cullen Value position performs unexpectedly, Cullen Enhanced 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 Cullen Enhanced will offset losses from the drop in Cullen Enhanced's long position.| Cullen Value vs. Vy Goldman Sachs | Cullen Value vs. Gabelli Gold Fund | Cullen Value vs. Great West Goldman Sachs | Cullen Value vs. Gamco Global Gold |
| Cullen Enhanced vs. Cullen Enhanced Equity | Cullen Enhanced vs. Cullen High Dividend | Cullen Enhanced vs. Dreyfus Global Real | Cullen Enhanced vs. Baron Discovery Fund |
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.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |