Correlation Between Grizzly Short and Leuthold Global
Can any of the company-specific risk be diversified away by investing in both Grizzly Short 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 Grizzly Short and Leuthold Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grizzly Short Fund and Leuthold Global Fund, you can compare the effects of market volatilities on Grizzly Short 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 Grizzly Short with a short position of Leuthold Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grizzly Short and Leuthold Global.
Diversification Opportunities for Grizzly Short and Leuthold Global
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Grizzly and Leuthold is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Grizzly Short Fund and Leuthold Global Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leuthold Global and Grizzly Short 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 Grizzly Short Fund 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 Grizzly Short i.e., Grizzly Short and Leuthold Global go up and down completely randomly.
Pair Corralation between Grizzly Short and Leuthold Global
Assuming the 90 days horizon Grizzly Short Fund is expected to generate 0.68 times more return on investment than Leuthold Global. However, Grizzly Short Fund is 1.46 times less risky than Leuthold Global. It trades about -0.25 of its potential returns per unit of risk. Leuthold Global Fund is currently generating about -0.28 per unit of risk. If you would invest 558.00 in Grizzly Short Fund on September 14, 2024 and sell it today you would lose (27.00) from holding Grizzly Short Fund or give up 4.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grizzly Short Fund vs. Leuthold Global Fund
Performance |
| Timeline |
| Grizzly Short |
| Leuthold Global |
Grizzly Short and Leuthold Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grizzly Short and Leuthold Global
The main advantage of trading using opposite Grizzly Short and Leuthold Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grizzly Short 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.| Grizzly Short vs. Leuthold Global Fund | Grizzly Short vs. Leuthold Select Industries | Grizzly Short vs. Leuthold E Investment | Grizzly Short vs. Leuthold E Investment |
| Leuthold Global vs. Leuthold Select Industries | Leuthold Global vs. Leuthold E Investment | Leuthold Global vs. Leuthold E Investment | Leuthold Global vs. Grizzly Short Fund |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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