Correlation Between Duff and Clarkston Partners
Can any of the company-specific risk be diversified away by investing in both Duff and Clarkston Partners 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 Duff and Clarkston Partners into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Duff And Phelps and Clarkston Partners Fund, you can compare the effects of market volatilities on Duff and Clarkston Partners 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 Duff with a short position of Clarkston Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of Duff and Clarkston Partners.
Diversification Opportunities for Duff and Clarkston Partners
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Duff and Clarkston is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Duff And Phelps and Clarkston Partners Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clarkston Partners and Duff 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 Duff And Phelps are associated (or correlated) with Clarkston Partners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clarkston Partners has no effect on the direction of Duff i.e., Duff and Clarkston Partners go up and down completely randomly.
Pair Corralation between Duff and Clarkston Partners
Considering the 90-day investment horizon Duff And Phelps is expected to generate 1.09 times more return on investment than Clarkston Partners. However, Duff is 1.09 times more volatile than Clarkston Partners Fund. It trades about 0.25 of its potential returns per unit of risk. Clarkston Partners Fund is currently generating about 0.11 per unit of risk. If you would invest 954.00 in Duff And Phelps on August 29, 2024 and sell it today you would earn a total of 293.00 from holding Duff And Phelps or generate 30.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Duff And Phelps vs. Clarkston Partners Fund
Performance |
| Timeline |
| Duff And Phelps |
| Clarkston Partners |
Duff and Clarkston Partners Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Duff and Clarkston Partners
The main advantage of trading using opposite Duff and Clarkston Partners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Duff position performs unexpectedly, Clarkston Partners 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 Clarkston Partners will offset losses from the drop in Clarkston Partners' long position.| Duff vs. Gabelli Global Small | Duff vs. MFS Investment Grade | Duff vs. Eaton Vance National | Duff vs. GAMCO Natural Resources |
| Clarkston Partners vs. Vanguard Mid Cap Value | Clarkston Partners vs. HUMANA INC | Clarkston Partners vs. Aquagold International | Clarkston Partners vs. Barloworld Ltd ADR |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |