Correlation Between Hunter Small and Strategic Asset
Can any of the company-specific risk be diversified away by investing in both Hunter Small and Strategic Asset 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 Strategic Asset 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 Strategic Asset Management, you can compare the effects of market volatilities on Hunter Small and Strategic Asset 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 Strategic Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunter Small and Strategic Asset.
Diversification Opportunities for Hunter Small and Strategic Asset
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hunter and Strategic is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Hunter Small Cap and Strategic Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strategic Asset Mana 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 Strategic Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strategic Asset Mana has no effect on the direction of Hunter Small i.e., Hunter Small and Strategic Asset go up and down completely randomly.
Pair Corralation between Hunter Small and Strategic Asset
Assuming the 90 days horizon Hunter Small Cap is expected to generate 3.0 times more return on investment than Strategic Asset. However, Hunter Small is 3.0 times more volatile than Strategic Asset Management. It trades about 0.04 of its potential returns per unit of risk. Strategic Asset Management is currently generating about 0.08 per unit of risk. If you would invest 1,095 in Hunter Small Cap on November 5, 2024 and sell it today you would earn a total of 179.00 from holding Hunter Small Cap or generate 16.35% 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. Strategic Asset Management
Performance |
| Timeline |
| Hunter Small Cap |
| Strategic Asset Mana |
Hunter Small and Strategic Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunter Small and Strategic Asset
The main advantage of trading using opposite Hunter Small and Strategic Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunter Small position performs unexpectedly, Strategic Asset 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 Strategic Asset will offset losses from the drop in Strategic Asset's long position.| Hunter Small vs. Firsthand Technology Opportunities | Hunter Small vs. Invesco Technology Fund | Hunter Small vs. Global Technology Portfolio | Hunter Small vs. Blackrock Science Technology |
| Strategic Asset vs. Wisdomtree Siegel Global | Strategic Asset vs. Qs Global Equity | Strategic Asset vs. Us Global Investors | Strategic Asset vs. Rbb Fund |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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