Correlation Between Grant Park and Counterpoint Tactical
Can any of the company-specific risk be diversified away by investing in both Grant Park and Counterpoint Tactical 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 Grant Park and Counterpoint Tactical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grant Park Multi and Counterpoint Tactical Income, you can compare the effects of market volatilities on Grant Park and Counterpoint Tactical 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 Grant Park with a short position of Counterpoint Tactical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grant Park and Counterpoint Tactical.
Diversification Opportunities for Grant Park and Counterpoint Tactical
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Grant and Counterpoint is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Grant Park Multi and Counterpoint Tactical Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Counterpoint Tactical and Grant Park 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 Grant Park Multi are associated (or correlated) with Counterpoint Tactical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Counterpoint Tactical has no effect on the direction of Grant Park i.e., Grant Park and Counterpoint Tactical go up and down completely randomly.
Pair Corralation between Grant Park and Counterpoint Tactical
Assuming the 90 days horizon Grant Park Multi is expected to generate 2.16 times more return on investment than Counterpoint Tactical. However, Grant Park is 2.16 times more volatile than Counterpoint Tactical Income. It trades about 0.2 of its potential returns per unit of risk. Counterpoint Tactical Income is currently generating about 0.12 per unit of risk. If you would invest 1,054 in Grant Park Multi on November 4, 2024 and sell it today you would earn a total of 14.00 from holding Grant Park Multi or generate 1.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grant Park Multi vs. Counterpoint Tactical Income
Performance |
| Timeline |
| Grant Park Multi |
| Counterpoint Tactical |
Grant Park and Counterpoint Tactical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grant Park and Counterpoint Tactical
The main advantage of trading using opposite Grant Park and Counterpoint Tactical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grant Park position performs unexpectedly, Counterpoint Tactical 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 Counterpoint Tactical will offset losses from the drop in Counterpoint Tactical's long position.| Grant Park vs. Grant Park Multi | Grant Park vs. Grant Park Multi | Grant Park vs. Grant Park Multi | Grant Park vs. Mndvux |
| Counterpoint Tactical vs. Vanguard Growth And | Counterpoint Tactical vs. Mid Cap Growth | Counterpoint Tactical vs. Rational Defensive Growth | Counterpoint Tactical vs. L Abbett 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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