Correlation Between Hussman Strategic and Leuthold Core
Can any of the company-specific risk be diversified away by investing in both Hussman Strategic and Leuthold Core 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 Leuthold Core 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 Leuthold E Investment, you can compare the effects of market volatilities on Hussman Strategic and Leuthold Core 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 Leuthold Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hussman Strategic and Leuthold Core.
Diversification Opportunities for Hussman Strategic and Leuthold Core
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hussman and Leuthold is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Hussman Strategic Growth and Leuthold E Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leuthold E Investment 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 Leuthold Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leuthold E Investment has no effect on the direction of Hussman Strategic i.e., Hussman Strategic and Leuthold Core go up and down completely randomly.
Pair Corralation between Hussman Strategic and Leuthold Core
Assuming the 90 days horizon Hussman Strategic Growth is expected to generate 1.05 times more return on investment than Leuthold Core. However, Hussman Strategic is 1.05 times more volatile than Leuthold E Investment. It trades about 0.03 of its potential returns per unit of risk. Leuthold E Investment is currently generating about -0.01 per unit of risk. If you would invest 548.00 in Hussman Strategic Growth on November 2, 2024 and sell it today you would earn a total of 11.00 from holding Hussman Strategic Growth or generate 2.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hussman Strategic Growth vs. Leuthold E Investment
Performance |
| Timeline |
| Hussman Strategic Growth |
| Leuthold E Investment |
Hussman Strategic and Leuthold Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hussman Strategic and Leuthold Core
The main advantage of trading using opposite Hussman Strategic and Leuthold Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hussman Strategic position performs unexpectedly, Leuthold Core 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 Leuthold Core will offset losses from the drop in Leuthold Core's long position.| Hussman Strategic vs. Fidelity Sai Inflationfocused | Hussman Strategic vs. Atac Inflation Rotation | Hussman Strategic vs. Aqr Managed Futures | Hussman Strategic vs. Short Duration Inflation |
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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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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