Correlation Between Hussman Strategic and Small Cap
Can any of the company-specific risk be diversified away by investing in both Hussman Strategic and Small Cap 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 Hussman Strategic and Small Cap into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hussman Strategic Dividend and Small Cap Value Fund, you can compare the effects of market volatilities on Hussman Strategic and Small Cap 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 Hussman Strategic with a short position of Small Cap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hussman Strategic and Small Cap.
Diversification Opportunities for Hussman Strategic and Small Cap
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hussman and Small is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Hussman Strategic Dividend and Small Cap Value Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Small Cap Value and Hussman Strategic 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 Hussman Strategic Dividend are associated (or correlated) with Small Cap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Small Cap Value has no effect on the direction of Hussman Strategic i.e., Hussman Strategic and Small Cap go up and down completely randomly.
Pair Corralation between Hussman Strategic and Small Cap
Assuming the 90 days horizon Hussman Strategic Dividend is expected to generate 0.1 times more return on investment than Small Cap. However, Hussman Strategic Dividend is 10.51 times less risky than Small Cap. It trades about 0.15 of its potential returns per unit of risk. Small Cap Value Fund is currently generating about -0.23 per unit of risk. If you would invest 950.00 in Hussman Strategic Dividend on October 23, 2024 and sell it today you would earn a total of 7.00 from holding Hussman Strategic Dividend or generate 0.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hussman Strategic Dividend vs. Small Cap Value Fund
Performance |
| Timeline |
| Hussman Strategic |
| Small Cap Value |
Hussman Strategic and Small Cap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hussman Strategic and Small Cap
The main advantage of trading using opposite Hussman Strategic and Small Cap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hussman Strategic position performs unexpectedly, Small Cap 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 Small Cap will offset losses from the drop in Small Cap's long position.| Hussman Strategic vs. Small Cap Value Fund | Hussman Strategic vs. Fpa Queens Road | Hussman Strategic vs. Amg River Road | Hussman Strategic vs. Ab Small Cap |
| Small Cap vs. Oil Gas Ultrasector | Small Cap vs. Advisory Research Mlp | Small Cap vs. Goldman Sachs Mlp | Small Cap vs. Pimco Energy Tactical |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |