Correlation Between Huber Capital and American Funds
Can any of the company-specific risk be diversified away by investing in both Huber Capital and American Funds 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 American Funds 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 American Funds 2030, you can compare the effects of market volatilities on Huber Capital and American Funds 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 American Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huber Capital and American Funds.
Diversification Opportunities for Huber Capital and American Funds
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Huber and American is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Huber Capital Diversified and American Funds 2030 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Funds 2030 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 American Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Funds 2030 has no effect on the direction of Huber Capital i.e., Huber Capital and American Funds go up and down completely randomly.
Pair Corralation between Huber Capital and American Funds
Assuming the 90 days horizon Huber Capital Diversified is expected to generate 1.51 times more return on investment than American Funds. However, Huber Capital is 1.51 times more volatile than American Funds 2030. It trades about 0.11 of its potential returns per unit of risk. American Funds 2030 is currently generating about 0.11 per unit of risk. If you would invest 1,867 in Huber Capital Diversified on September 12, 2024 and sell it today you would earn a total of 640.00 from holding Huber Capital Diversified or generate 34.28% 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. American Funds 2030
Performance |
| Timeline |
| Huber Capital Diversified |
| American Funds 2030 |
Huber Capital and American Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huber Capital and American Funds
The main advantage of trading using opposite Huber Capital and American Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huber Capital position performs unexpectedly, American Funds 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 American Funds will offset losses from the drop in American Funds' long position.| Huber Capital vs. Pro Blend Moderate Term | Huber Capital vs. Jp Morgan Smartretirement | Huber Capital vs. Putnman Retirement Ready | Huber Capital vs. Strategic Allocation Moderate |
| American Funds vs. Huber Capital Diversified | American Funds vs. Wasatch Small Cap | American Funds vs. Davenport Small Cap | American Funds vs. Fidelity Advisor Diversified |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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