Correlation Between Gotham Enhanced and Swan Hedged
Can any of the company-specific risk be diversified away by investing in both Gotham Enhanced and Swan Hedged 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 Gotham Enhanced and Swan Hedged into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gotham Enhanced 500 and Swan Hedged Equity, you can compare the effects of market volatilities on Gotham Enhanced and Swan Hedged 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 Gotham Enhanced with a short position of Swan Hedged. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gotham Enhanced and Swan Hedged.
Diversification Opportunities for Gotham Enhanced and Swan Hedged
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Gotham and Swan is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Gotham Enhanced 500 and Swan Hedged Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swan Hedged Equity and Gotham Enhanced 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 Gotham Enhanced 500 are associated (or correlated) with Swan Hedged. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Swan Hedged Equity has no effect on the direction of Gotham Enhanced i.e., Gotham Enhanced and Swan Hedged go up and down completely randomly.
Pair Corralation between Gotham Enhanced and Swan Hedged
If you would invest 3,193 in Gotham Enhanced 500 on August 30, 2024 and sell it today you would earn a total of 96.00 from holding Gotham Enhanced 500 or generate 3.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 4.55% |
| Values | Daily Returns |
Gotham Enhanced 500 vs. Swan Hedged Equity
Performance |
| Timeline |
| Gotham Enhanced 500 |
| Swan Hedged Equity |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
Gotham Enhanced and Swan Hedged Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gotham Enhanced and Swan Hedged
The main advantage of trading using opposite Gotham Enhanced and Swan Hedged positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gotham Enhanced position performs unexpectedly, Swan Hedged 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 Swan Hedged will offset losses from the drop in Swan Hedged's long position.| Gotham Enhanced vs. Tidal ETF Trust | Gotham Enhanced vs. Gotham Large Value | Gotham Enhanced vs. Goldman Sachs MarketBeta | Gotham Enhanced vs. The Acquirers |
| Swan Hedged vs. Amplify BlackSwan Growth | Swan Hedged vs. Invesco SP 500 | Swan Hedged vs. Simplify Equity PLUS | Swan Hedged vs. ETF Series Solutions |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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