Correlation Between Hunter Small and Marsico Global
Can any of the company-specific risk be diversified away by investing in both Hunter Small and Marsico 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 Hunter Small and Marsico Global 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 Marsico Global, you can compare the effects of market volatilities on Hunter Small and Marsico 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 Hunter Small with a short position of Marsico Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunter Small and Marsico Global.
Diversification Opportunities for Hunter Small and Marsico Global
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hunter and Marsico is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Hunter Small Cap and Marsico Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marsico Global 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 Marsico Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marsico Global has no effect on the direction of Hunter Small i.e., Hunter Small and Marsico Global go up and down completely randomly.
Pair Corralation between Hunter Small and Marsico Global
Assuming the 90 days horizon Hunter Small Cap is expected to under-perform the Marsico Global. But the mutual fund apears to be less risky and, when comparing its historical volatility, Hunter Small Cap is 1.19 times less risky than Marsico Global. The mutual fund trades about -0.37 of its potential returns per unit of risk. The Marsico Global is currently generating about -0.17 of returns per unit of risk over similar time horizon. If you would invest 2,737 in Marsico Global on October 9, 2024 and sell it today you would lose (101.00) from holding Marsico Global or give up 3.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hunter Small Cap vs. Marsico Global
Performance |
| Timeline |
| Hunter Small Cap |
| Marsico Global |
Hunter Small and Marsico Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunter Small and Marsico Global
The main advantage of trading using opposite Hunter Small and Marsico Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunter Small position performs unexpectedly, Marsico 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 Marsico Global will offset losses from the drop in Marsico Global's long position.| Hunter Small vs. Federated Global Allocation | Hunter Small vs. Barings Global Floating | Hunter Small vs. Pace Large Growth | Hunter Small vs. Old Westbury Large |
| Marsico Global vs. Altegris Futures Evolution | Marsico Global vs. Credit Suisse Multialternative | Marsico Global vs. Lord Abbett Inflation | Marsico Global vs. Aqr Managed Futures |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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