Correlation Between Hunter Small and Aggressive Growth
Can any of the company-specific risk be diversified away by investing in both Hunter Small and Aggressive 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 Hunter Small and Aggressive Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hunter Small Cap and Aggressive Growth Allocation, you can compare the effects of market volatilities on Hunter Small and Aggressive 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 Hunter Small with a short position of Aggressive Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunter Small and Aggressive Growth.
Diversification Opportunities for Hunter Small and Aggressive Growth
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hunter and Aggressive is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Hunter Small Cap and Aggressive Growth Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aggressive Growth and Hunter Small 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 Hunter Small Cap are associated (or correlated) with Aggressive Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aggressive Growth has no effect on the direction of Hunter Small i.e., Hunter Small and Aggressive Growth go up and down completely randomly.
Pair Corralation between Hunter Small and Aggressive Growth
Assuming the 90 days horizon Hunter Small is expected to generate 1.15 times less return on investment than Aggressive Growth. In addition to that, Hunter Small is 1.52 times more volatile than Aggressive Growth Allocation. It trades about 0.06 of its total potential returns per unit of risk. Aggressive Growth Allocation is currently generating about 0.11 per unit of volatility. If you would invest 960.00 in Aggressive Growth Allocation on November 9, 2024 and sell it today you would earn a total of 201.00 from holding Aggressive Growth Allocation or generate 20.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hunter Small Cap vs. Aggressive Growth Allocation
Performance |
| Timeline |
| Hunter Small Cap |
| Aggressive Growth |
Hunter Small and Aggressive Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunter Small and Aggressive Growth
The main advantage of trading using opposite Hunter Small and Aggressive Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunter Small position performs unexpectedly, Aggressive 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 Aggressive Growth will offset losses from the drop in Aggressive Growth's long position.| Hunter Small vs. American Century Etf | Hunter Small vs. Amg River Road | Hunter Small vs. Vanguard Small Cap Value | Hunter Small vs. Lsv Small Cap |
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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