Correlation Between Hundredfold Select and Spectrum Advisors
Can any of the company-specific risk be diversified away by investing in both Hundredfold Select and Spectrum Advisors 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 Hundredfold Select and Spectrum Advisors into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hundredfold Select Alternative and Spectrum Advisors Preferred, you can compare the effects of market volatilities on Hundredfold Select and Spectrum Advisors 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 Hundredfold Select with a short position of Spectrum Advisors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hundredfold Select and Spectrum Advisors.
Diversification Opportunities for Hundredfold Select and Spectrum Advisors
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hundredfold and Spectrum is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Hundredfold Select Alternative and Spectrum Advisors Preferred in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spectrum Advisors and Hundredfold Select 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 Hundredfold Select Alternative are associated (or correlated) with Spectrum Advisors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spectrum Advisors has no effect on the direction of Hundredfold Select i.e., Hundredfold Select and Spectrum Advisors go up and down completely randomly.
Pair Corralation between Hundredfold Select and Spectrum Advisors
Assuming the 90 days horizon Hundredfold Select is expected to generate 1.28 times less return on investment than Spectrum Advisors. But when comparing it to its historical volatility, Hundredfold Select Alternative is 2.89 times less risky than Spectrum Advisors. It trades about 0.19 of its potential returns per unit of risk. Spectrum Advisors Preferred is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,821 in Spectrum Advisors Preferred on August 30, 2024 and sell it today you would earn a total of 27.00 from holding Spectrum Advisors Preferred or generate 1.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Hundredfold Select Alternative vs. Spectrum Advisors Preferred
Performance |
| Timeline |
| Hundredfold Select |
| Spectrum Advisors |
Hundredfold Select and Spectrum Advisors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hundredfold Select and Spectrum Advisors
The main advantage of trading using opposite Hundredfold Select and Spectrum Advisors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hundredfold Select position performs unexpectedly, Spectrum Advisors 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 Spectrum Advisors will offset losses from the drop in Spectrum Advisors' long position.| Hundredfold Select vs. Spectrum Low Volatility | Hundredfold Select vs. Hundredfold Select Alternative | Hundredfold Select vs. Columbia Thermostat Fund | Hundredfold Select vs. Ontrack E Fund |
| Spectrum Advisors vs. Health Care Fund | Spectrum Advisors vs. Alphacentric Lifesci Healthcare | Spectrum Advisors vs. Baillie Gifford Health | Spectrum Advisors vs. Health Biotchnology Portfolio |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |