Correlation Between Forum Real and Leuthold Global
Can any of the company-specific risk be diversified away by investing in both Forum Real and Leuthold Global 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 Forum Real and Leuthold Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Forum Real Estate and Leuthold Global Fund, you can compare the effects of market volatilities on Forum Real and Leuthold Global 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 Forum Real with a short position of Leuthold Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Forum Real and Leuthold Global.
Diversification Opportunities for Forum Real and Leuthold Global
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Forum and Leuthold is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Forum Real Estate and Leuthold Global Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leuthold Global and Forum Real 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 Forum Real Estate are associated (or correlated) with Leuthold Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leuthold Global has no effect on the direction of Forum Real i.e., Forum Real and Leuthold Global go up and down completely randomly.
Pair Corralation between Forum Real and Leuthold Global
Assuming the 90 days horizon Forum Real is expected to generate 2.66 times less return on investment than Leuthold Global. But when comparing it to its historical volatility, Forum Real Estate is 6.81 times less risky than Leuthold Global. It trades about 0.56 of its potential returns per unit of risk. Leuthold Global Fund is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 884.00 in Leuthold Global Fund on October 24, 2024 and sell it today you would earn a total of 17.00 from holding Leuthold Global Fund or generate 1.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Forum Real Estate vs. Leuthold Global Fund
Performance |
| Timeline |
| Forum Real Estate |
| Leuthold Global |
Forum Real and Leuthold Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Forum Real and Leuthold Global
The main advantage of trading using opposite Forum Real and Leuthold Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Forum Real position performs unexpectedly, Leuthold Global 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 Leuthold Global will offset losses from the drop in Leuthold Global's long position.| Forum Real vs. Davis Financial Fund | Forum Real vs. Financials Ultrasector Profund | Forum Real vs. T Rowe Price | Forum Real vs. Goldman Sachs Trust |
| Leuthold Global vs. Qs Large Cap | Leuthold Global vs. Tax Managed Large Cap | Leuthold Global vs. Rbc Global Equity | Leuthold Global vs. Pnc Balanced Allocation |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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