Correlation Between Fpa Crescent and Leuthold Select
Can any of the company-specific risk be diversified away by investing in both Fpa Crescent and Leuthold Select 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 Fpa Crescent and Leuthold Select into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fpa Crescent Fund and Leuthold Select Industries, you can compare the effects of market volatilities on Fpa Crescent and Leuthold Select 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 Fpa Crescent with a short position of Leuthold Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fpa Crescent and Leuthold Select.
Diversification Opportunities for Fpa Crescent and Leuthold Select
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fpa and Leuthold is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Fpa Crescent Fund and Leuthold Select Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leuthold Select Indu and Fpa Crescent 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 Fpa Crescent Fund are associated (or correlated) with Leuthold Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leuthold Select Indu has no effect on the direction of Fpa Crescent i.e., Fpa Crescent and Leuthold Select go up and down completely randomly.
Pair Corralation between Fpa Crescent and Leuthold Select
Assuming the 90 days horizon Fpa Crescent Fund is expected to generate 0.1 times more return on investment than Leuthold Select. However, Fpa Crescent Fund is 9.58 times less risky than Leuthold Select. It trades about 0.19 of its potential returns per unit of risk. Leuthold Select Industries is currently generating about -0.21 per unit of risk. If you would invest 4,297 in Fpa Crescent Fund on September 14, 2024 and sell it today you would earn a total of 59.00 from holding Fpa Crescent Fund or generate 1.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fpa Crescent Fund vs. Leuthold Select Industries
Performance |
| Timeline |
| Fpa Crescent |
| Leuthold Select Indu |
Fpa Crescent and Leuthold Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fpa Crescent and Leuthold Select
The main advantage of trading using opposite Fpa Crescent and Leuthold Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fpa Crescent position performs unexpectedly, Leuthold Select 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 Select will offset losses from the drop in Leuthold Select's long position.| Fpa Crescent vs. Permanent Portfolio Class | Fpa Crescent vs. Amg Yacktman Fund | Fpa Crescent vs. Berwyn Income Fund | Fpa Crescent vs. First Eagle Global |
| Leuthold Select vs. Stone Ridge Diversified | Leuthold Select vs. Wealthbuilder Conservative Allocation | Leuthold Select vs. Tax Free Conservative Income | Leuthold Select vs. Calvert Conservative 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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