Correlation Between US Global and CAPITAL
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By analyzing existing cross correlation between US Global Investors and CAPITAL ONE FINANCIAL, you can compare the effects of market volatilities on US Global and CAPITAL 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 US Global with a short position of CAPITAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of US Global and CAPITAL.
Diversification Opportunities for US Global and CAPITAL
Very weak diversification
The 3 months correlation between GROW and CAPITAL is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding US Global Investors and CAPITAL ONE FINANCIAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CAPITAL ONE FINANCIAL and US Global 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 US Global Investors are associated (or correlated) with CAPITAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CAPITAL ONE FINANCIAL has no effect on the direction of US Global i.e., US Global and CAPITAL go up and down completely randomly.
Pair Corralation between US Global and CAPITAL
Given the investment horizon of 90 days US Global Investors is expected to under-perform the CAPITAL. In addition to that, US Global is 3.33 times more volatile than CAPITAL ONE FINANCIAL. It trades about -0.01 of its total potential returns per unit of risk. CAPITAL ONE FINANCIAL is currently generating about -0.01 per unit of volatility. If you would invest 9,579 in CAPITAL ONE FINANCIAL on August 28, 2024 and sell it today you would lose (299.00) from holding CAPITAL ONE FINANCIAL or give up 3.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.95% |
| Values | Daily Returns |
US Global Investors vs. CAPITAL ONE FINANCIAL
Performance |
| Timeline |
| US Global Investors |
| CAPITAL ONE FINANCIAL |
US Global and CAPITAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with US Global and CAPITAL
The main advantage of trading using opposite US Global and CAPITAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if US Global position performs unexpectedly, CAPITAL 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 CAPITAL will offset losses from the drop in CAPITAL's long position.| US Global vs. Aurora Innovation | US Global vs. HUMANA INC | US Global vs. Aquagold International | US Global vs. Barloworld Ltd ADR |
| CAPITAL vs. AEP TEX INC | CAPITAL vs. US BANK NATIONAL | CAPITAL vs. Eat Beyond Global | CAPITAL vs. Charles Schwab Corp |
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.
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