Correlation Between Johcm Emerging and Cullen High
Can any of the company-specific risk be diversified away by investing in both Johcm Emerging 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 Johcm Emerging and Cullen High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Johcm Emerging Markets and Cullen High Dividend, you can compare the effects of market volatilities on Johcm Emerging 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 Johcm Emerging with a short position of Cullen High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Johcm Emerging and Cullen High.
Diversification Opportunities for Johcm Emerging and Cullen High
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Johcm and Cullen is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Johcm Emerging Markets 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 Johcm Emerging 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 Johcm Emerging Markets 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 Johcm Emerging i.e., Johcm Emerging and Cullen High go up and down completely randomly.
Pair Corralation between Johcm Emerging and Cullen High
Assuming the 90 days horizon Johcm Emerging is expected to generate 2.02 times less return on investment than Cullen High. In addition to that, Johcm Emerging is 1.37 times more volatile than Cullen High Dividend. It trades about 0.03 of its total potential returns per unit of risk. Cullen High Dividend is currently generating about 0.08 per unit of volatility. If you would invest 1,282 in Cullen High Dividend on September 2, 2024 and sell it today you would earn a total of 244.00 from holding Cullen High Dividend or generate 19.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Johcm Emerging Markets vs. Cullen High Dividend
Performance |
| Timeline |
| Johcm Emerging Markets |
| Cullen High Dividend |
Johcm Emerging and Cullen High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Johcm Emerging and Cullen High
The main advantage of trading using opposite Johcm Emerging and Cullen High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Johcm Emerging 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.| Johcm Emerging vs. Johcm International Select | Johcm Emerging vs. Ariel International Fund | Johcm Emerging vs. Amg River Road | Johcm Emerging vs. Pzena Emerging Markets |
| Cullen High vs. The Value Fund | Cullen High vs. Lazard Global Listed | Cullen High vs. Lazard International Strategic | Cullen High vs. Tcw Relative 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 CEOs Directory module to screen CEOs from public companies around the world.
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