Correlation Between Highland Small-cap and Ancora/thelen Small-mid
Can any of the company-specific risk be diversified away by investing in both Highland Small-cap and Ancora/thelen Small-mid 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 Highland Small-cap and Ancora/thelen Small-mid into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Highland Small Cap Equity and Ancorathelen Small Mid Cap, you can compare the effects of market volatilities on Highland Small-cap and Ancora/thelen Small-mid 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 Highland Small-cap with a short position of Ancora/thelen Small-mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Highland Small-cap and Ancora/thelen Small-mid.
Diversification Opportunities for Highland Small-cap and Ancora/thelen Small-mid
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Highland and Ancora/thelen is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Highland Small Cap Equity and Ancorathelen Small Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ancora/thelen Small-mid and Highland Small-cap 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 Highland Small Cap Equity are associated (or correlated) with Ancora/thelen Small-mid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ancora/thelen Small-mid has no effect on the direction of Highland Small-cap i.e., Highland Small-cap and Ancora/thelen Small-mid go up and down completely randomly.
Pair Corralation between Highland Small-cap and Ancora/thelen Small-mid
Assuming the 90 days horizon Highland Small-cap is expected to generate 4.66 times less return on investment than Ancora/thelen Small-mid. But when comparing it to its historical volatility, Highland Small Cap Equity is 1.15 times less risky than Ancora/thelen Small-mid. It trades about 0.03 of its potential returns per unit of risk. Ancorathelen Small Mid Cap is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,886 in Ancorathelen Small Mid Cap on September 3, 2024 and sell it today you would earn a total of 388.00 from holding Ancorathelen Small Mid Cap or generate 20.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Highland Small Cap Equity vs. Ancorathelen Small Mid Cap
Performance |
| Timeline |
| Highland Small Cap |
| Ancora/thelen Small-mid |
Highland Small-cap and Ancora/thelen Small-mid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Highland Small-cap and Ancora/thelen Small-mid
The main advantage of trading using opposite Highland Small-cap and Ancora/thelen Small-mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Highland Small-cap position performs unexpectedly, Ancora/thelen Small-mid 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 Ancora/thelen Small-mid will offset losses from the drop in Ancora/thelen Small-mid's long position.| Highland Small-cap vs. Ancorathelen Small Mid Cap | Highland Small-cap vs. Qs Small Capitalization | Highland Small-cap vs. Small Pany Growth | Highland Small-cap vs. Rbc Small Cap |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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