Correlation Between Transamerica Funds and Cullen Value
Can any of the company-specific risk be diversified away by investing in both Transamerica Funds and Cullen Value 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 Transamerica Funds and Cullen Value into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Transamerica Funds and Cullen Value Fund, you can compare the effects of market volatilities on Transamerica Funds and Cullen Value 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 Transamerica Funds with a short position of Cullen Value. Check out your portfolio center. Please also check ongoing floating volatility patterns of Transamerica Funds and Cullen Value.
Diversification Opportunities for Transamerica Funds and Cullen Value
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Transamerica and CULLEN is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Transamerica Funds and Cullen Value Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cullen Value and Transamerica Funds 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 Transamerica Funds are associated (or correlated) with Cullen Value. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cullen Value has no effect on the direction of Transamerica Funds i.e., Transamerica Funds and Cullen Value go up and down completely randomly.
Pair Corralation between Transamerica Funds and Cullen Value
If you would invest 1,424 in Cullen Value Fund on August 30, 2024 and sell it today you would earn a total of 51.00 from holding Cullen Value Fund or generate 3.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Transamerica Funds vs. Cullen Value Fund
Performance |
| Timeline |
| Transamerica Funds |
| Cullen Value |
Transamerica Funds and Cullen Value Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Transamerica Funds and Cullen Value
The main advantage of trading using opposite Transamerica Funds and Cullen Value positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Transamerica Funds position performs unexpectedly, Cullen Value 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 Value will offset losses from the drop in Cullen Value's long position.| Transamerica Funds vs. Vanguard Total Stock | Transamerica Funds vs. Vanguard 500 Index | Transamerica Funds vs. Vanguard Total Stock | Transamerica Funds vs. Vanguard Total Stock |
| Cullen Value vs. Nuveen Massachusetts Municipal | Cullen Value vs. Barings Active Short | Cullen Value vs. Ab Impact Municipal | Cullen Value vs. Nebraska Municipal Fund |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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