Correlation Between Hunter Small and Mutual Of
Can any of the company-specific risk be diversified away by investing in both Hunter Small and Mutual Of 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 Mutual Of 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 Mutual Of America, you can compare the effects of market volatilities on Hunter Small and Mutual Of 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 Mutual Of. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunter Small and Mutual Of.
Diversification Opportunities for Hunter Small and Mutual Of
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hunter and Mutual is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Hunter Small Cap and Mutual Of America in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mutual Of America 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 Mutual Of. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mutual Of America has no effect on the direction of Hunter Small i.e., Hunter Small and Mutual Of go up and down completely randomly.
Pair Corralation between Hunter Small and Mutual Of
Assuming the 90 days horizon Hunter Small Cap is expected to generate 2.27 times more return on investment than Mutual Of. However, Hunter Small is 2.27 times more volatile than Mutual Of America. It trades about 0.23 of its potential returns per unit of risk. Mutual Of America is currently generating about 0.13 per unit of risk. If you would invest 1,245 in Hunter Small Cap on October 24, 2024 and sell it today you would earn a total of 45.00 from holding Hunter Small Cap or generate 3.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hunter Small Cap vs. Mutual Of America
Performance |
| Timeline |
| Hunter Small Cap |
| Mutual Of America |
Hunter Small and Mutual Of Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunter Small and Mutual Of
The main advantage of trading using opposite Hunter Small and Mutual Of positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunter Small position performs unexpectedly, Mutual Of 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 Mutual Of will offset losses from the drop in Mutual Of's long position.| Hunter Small vs. Qs Global Equity | Hunter Small vs. Gmo Global Equity | Hunter Small vs. Kinetics Global Fund | Hunter Small vs. Morningstar Global Income |
| Mutual Of vs. Ab Small Cap | Mutual Of vs. Kinetics Small Cap | Mutual Of vs. Touchstone Small Cap | Mutual Of vs. Hunter Small Cap |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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