Correlation Between Heartland Value and Ladenburg Growth
Can any of the company-specific risk be diversified away by investing in both Heartland Value and Ladenburg Growth 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 Heartland Value and Ladenburg Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Heartland Value Plus and Ladenburg Growth, you can compare the effects of market volatilities on Heartland Value and Ladenburg Growth 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 Heartland Value with a short position of Ladenburg Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Heartland Value and Ladenburg Growth.
Diversification Opportunities for Heartland Value and Ladenburg Growth
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between HEARTLAND and Ladenburg is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Heartland Value Plus and Ladenburg Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ladenburg Growth and Heartland Value 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 Heartland Value Plus are associated (or correlated) with Ladenburg Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ladenburg Growth has no effect on the direction of Heartland Value i.e., Heartland Value and Ladenburg Growth go up and down completely randomly.
Pair Corralation between Heartland Value and Ladenburg Growth
Assuming the 90 days horizon Heartland Value Plus is expected to under-perform the Ladenburg Growth. In addition to that, Heartland Value is 1.98 times more volatile than Ladenburg Growth. It trades about -0.19 of its total potential returns per unit of risk. Ladenburg Growth is currently generating about -0.17 per unit of volatility. If you would invest 1,712 in Ladenburg Growth on November 29, 2024 and sell it today you would lose (34.00) from holding Ladenburg Growth or give up 1.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Heartland Value Plus vs. Ladenburg Growth
Performance |
| Timeline |
| Heartland Value Plus |
| Ladenburg Growth |
Heartland Value and Ladenburg Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Heartland Value and Ladenburg Growth
The main advantage of trading using opposite Heartland Value and Ladenburg Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Heartland Value position performs unexpectedly, Ladenburg Growth 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 Ladenburg Growth will offset losses from the drop in Ladenburg Growth's long position.| Heartland Value vs. Heartland Value Fund | Heartland Value vs. Large Cap Fund | Heartland Value vs. Amg Yacktman Fund | Heartland Value vs. Wasatch Large Cap |
| Ladenburg Growth vs. Vanguard Intermediate Term Government | Ladenburg Growth vs. Inverse Government Long | Ladenburg Growth vs. Federated Government Income | Ladenburg Growth vs. Virtus Seix Government |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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