Correlation Between Hussman Strategic and Gateway Fund
Can any of the company-specific risk be diversified away by investing in both Hussman Strategic and Gateway Fund 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 Gateway Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hussman Strategic Growth and Gateway Fund Class, you can compare the effects of market volatilities on Hussman Strategic and Gateway Fund 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 Gateway Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hussman Strategic and Gateway Fund.
Diversification Opportunities for Hussman Strategic and Gateway Fund
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hussman and Gateway is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Hussman Strategic Growth and Gateway Fund Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gateway Fund Class 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 Growth are associated (or correlated) with Gateway Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gateway Fund Class has no effect on the direction of Hussman Strategic i.e., Hussman Strategic and Gateway Fund go up and down completely randomly.
Pair Corralation between Hussman Strategic and Gateway Fund
Assuming the 90 days horizon Hussman Strategic Growth is expected to under-perform the Gateway Fund. In addition to that, Hussman Strategic is 1.45 times more volatile than Gateway Fund Class. It trades about -0.06 of its total potential returns per unit of risk. Gateway Fund Class is currently generating about 0.16 per unit of volatility. If you would invest 3,956 in Gateway Fund Class on August 25, 2024 and sell it today you would earn a total of 728.00 from holding Gateway Fund Class or generate 18.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hussman Strategic Growth vs. Gateway Fund Class
Performance |
| Timeline |
| Hussman Strategic Growth |
| Gateway Fund Class |
Hussman Strategic and Gateway Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hussman Strategic and Gateway Fund
The main advantage of trading using opposite Hussman Strategic and Gateway Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hussman Strategic position performs unexpectedly, Gateway Fund 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 Gateway Fund will offset losses from the drop in Gateway Fund's long position.| Hussman Strategic vs. Artisan High Income | Hussman Strategic vs. Pace Municipal Fixed | Hussman Strategic vs. T Rowe Price | Hussman Strategic vs. Pace Municipal Fixed |
| Gateway Fund vs. Alternative Asset Allocation | Gateway Fund vs. Aqr Large Cap | Gateway Fund vs. Quantitative U S | Gateway Fund vs. Legg Mason Bw |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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