Correlation Between Hussman Strategic and The Merger
Can any of the company-specific risk be diversified away by investing in both Hussman Strategic and The Merger 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 The Merger 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 The Merger Fund, you can compare the effects of market volatilities on Hussman Strategic and The Merger 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 The Merger. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hussman Strategic and The Merger.
Diversification Opportunities for Hussman Strategic and The Merger
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hussman and The is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Hussman Strategic Growth and The Merger Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Merger Fund 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 The Merger. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Merger Fund has no effect on the direction of Hussman Strategic i.e., Hussman Strategic and The Merger go up and down completely randomly.
Pair Corralation between Hussman Strategic and The Merger
Assuming the 90 days horizon Hussman Strategic Growth is expected to under-perform the The Merger. In addition to that, Hussman Strategic is 2.74 times more volatile than The Merger Fund. It trades about -0.07 of its total potential returns per unit of risk. The Merger Fund is currently generating about 0.04 per unit of volatility. If you would invest 1,684 in The Merger Fund on August 25, 2024 and sell it today you would earn a total of 69.00 from holding The Merger Fund or generate 4.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hussman Strategic Growth vs. The Merger Fund
Performance |
| Timeline |
| Hussman Strategic Growth |
| Merger Fund |
Hussman Strategic and The Merger Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hussman Strategic and The Merger
The main advantage of trading using opposite Hussman Strategic and The Merger positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hussman Strategic position performs unexpectedly, The Merger 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 The Merger will offset losses from the drop in The Merger'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 |
| The Merger vs. Strategic Advisers International | The Merger vs. Strategic Advisers Income | The Merger vs. Aquagold International | The Merger vs. Morningstar Unconstrained Allocation |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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