Correlation Between Huber Capital and Strengthening Dollar
Can any of the company-specific risk be diversified away by investing in both Huber Capital and Strengthening Dollar 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 Strengthening Dollar 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 Strengthening Dollar 2x, you can compare the effects of market volatilities on Huber Capital and Strengthening Dollar 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 Strengthening Dollar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huber Capital and Strengthening Dollar.
Diversification Opportunities for Huber Capital and Strengthening Dollar
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Huber and Strengthening is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Huber Capital Diversified and Strengthening Dollar 2x in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strengthening Dollar 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 Strengthening Dollar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strengthening Dollar has no effect on the direction of Huber Capital i.e., Huber Capital and Strengthening Dollar go up and down completely randomly.
Pair Corralation between Huber Capital and Strengthening Dollar
Assuming the 90 days horizon Huber Capital Diversified is expected to under-perform the Strengthening Dollar. But the mutual fund apears to be less risky and, when comparing its historical volatility, Huber Capital Diversified is 1.01 times less risky than Strengthening Dollar. The mutual fund trades about -0.03 of its potential returns per unit of risk. The Strengthening Dollar 2x is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 6,628 in Strengthening Dollar 2x on September 12, 2024 and sell it today you would earn a total of 134.00 from holding Strengthening Dollar 2x or generate 2.02% 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. Strengthening Dollar 2x
Performance |
| Timeline |
| Huber Capital Diversified |
| Strengthening Dollar |
Huber Capital and Strengthening Dollar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huber Capital and Strengthening Dollar
The main advantage of trading using opposite Huber Capital and Strengthening Dollar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huber Capital position performs unexpectedly, Strengthening Dollar 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 Strengthening Dollar will offset losses from the drop in Strengthening Dollar's 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 |
| Strengthening Dollar vs. Queens Road Small | Strengthening Dollar vs. Heartland Value Plus | Strengthening Dollar vs. Applied Finance Explorer | Strengthening Dollar vs. Vanguard Small Cap Value |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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