Correlation Between Greenspring Fund and Highland Small-cap
Can any of the company-specific risk be diversified away by investing in both Greenspring Fund and Highland Small-cap 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 Greenspring Fund and Highland Small-cap into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Greenspring Fund Retail and Highland Small Cap Equity, you can compare the effects of market volatilities on Greenspring Fund and Highland Small-cap 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 Greenspring Fund with a short position of Highland Small-cap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greenspring Fund and Highland Small-cap.
Diversification Opportunities for Greenspring Fund and Highland Small-cap
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Greenspring and Highland is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Greenspring Fund Retail and Highland Small Cap Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Highland Small Cap and Greenspring Fund 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 Greenspring Fund Retail are associated (or correlated) with Highland Small-cap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Highland Small Cap has no effect on the direction of Greenspring Fund i.e., Greenspring Fund and Highland Small-cap go up and down completely randomly.
Pair Corralation between Greenspring Fund and Highland Small-cap
Assuming the 90 days horizon Greenspring Fund Retail is expected to generate 1.02 times more return on investment than Highland Small-cap. However, Greenspring Fund is 1.02 times more volatile than Highland Small Cap Equity. It trades about 0.01 of its potential returns per unit of risk. Highland Small Cap Equity is currently generating about -0.04 per unit of risk. If you would invest 2,194 in Greenspring Fund Retail on January 22, 2025 and sell it today you would earn a total of 56.00 from holding Greenspring Fund Retail or generate 2.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Greenspring Fund Retail vs. Highland Small Cap Equity
Performance |
| Timeline |
| Greenspring Fund Retail |
| Highland Small Cap |
Greenspring Fund and Highland Small-cap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greenspring Fund and Highland Small-cap
The main advantage of trading using opposite Greenspring Fund and Highland Small-cap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greenspring Fund position performs unexpectedly, Highland Small-cap 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 Highland Small-cap will offset losses from the drop in Highland Small-cap's long position.| Greenspring Fund vs. Berwyn Income Fund | Greenspring Fund vs. Fpa Crescent Fund | Greenspring Fund vs. James Balanced Golden | Greenspring Fund vs. Permanent Portfolio Class |
| Highland Small-cap vs. Ab Bond Inflation | Highland Small-cap vs. Scout E Bond | Highland Small-cap vs. Morningstar Defensive Bond | Highland Small-cap vs. Ab Bond Inflation |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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