Correlation Between Huber Capital and Cullen High
Can any of the company-specific risk be diversified away by investing in both Huber Capital and Cullen High 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 Huber Capital and Cullen High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Huber Capital Diversified and Cullen High Dividend, you can compare the effects of market volatilities on Huber Capital and Cullen High 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 Huber Capital with a short position of Cullen High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huber Capital and Cullen High.
Diversification Opportunities for Huber Capital and Cullen High
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Huber and Cullen is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Huber Capital Diversified and Cullen High Dividend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cullen High Dividend and Huber Capital 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 Huber Capital Diversified are associated (or correlated) with Cullen High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cullen High Dividend has no effect on the direction of Huber Capital i.e., Huber Capital and Cullen High go up and down completely randomly.
Pair Corralation between Huber Capital and Cullen High
Assuming the 90 days horizon Huber Capital Diversified is expected to generate 1.24 times more return on investment than Cullen High. However, Huber Capital is 1.24 times more volatile than Cullen High Dividend. It trades about 0.08 of its potential returns per unit of risk. Cullen High Dividend is currently generating about 0.06 per unit of risk. If you would invest 1,778 in Huber Capital Diversified on November 28, 2024 and sell it today you would earn a total of 639.00 from holding Huber Capital Diversified or generate 35.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huber Capital Diversified vs. Cullen High Dividend
Performance |
| Timeline |
| Huber Capital Diversified |
| Cullen High Dividend |
Huber Capital and Cullen High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huber Capital and Cullen High
The main advantage of trading using opposite Huber Capital and Cullen High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huber Capital position performs unexpectedly, Cullen High 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 Cullen High will offset losses from the drop in Cullen High's long position.| Huber Capital vs. Old Westbury Municipal | Huber Capital vs. Inverse Government Long | Huber Capital vs. Vanguard Intermediate Term Government | Huber Capital vs. Prudential California Muni |
| Cullen High vs. The Gabelli Healthcare | Cullen High vs. Deutsche Health And | Cullen High vs. Allianzgi Health Sciences | Cullen High vs. Baillie Gifford Health |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |