Correlation Between Leuthold Core and Leuthold Global
Can any of the company-specific risk be diversified away by investing in both Leuthold Core and Leuthold Global 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 Leuthold Core and Leuthold Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Leuthold E Investment and Leuthold Global Fund, you can compare the effects of market volatilities on Leuthold Core and Leuthold Global 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 Leuthold Core with a short position of Leuthold Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Leuthold Core and Leuthold Global.
Diversification Opportunities for Leuthold Core and Leuthold Global
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Leuthold and Leuthold is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Leuthold E Investment and Leuthold Global Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leuthold Global and Leuthold Core 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 Leuthold E Investment are associated (or correlated) with Leuthold Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leuthold Global has no effect on the direction of Leuthold Core i.e., Leuthold Core and Leuthold Global go up and down completely randomly.
Pair Corralation between Leuthold Core and Leuthold Global
Assuming the 90 days horizon Leuthold E Investment is expected to generate 0.97 times more return on investment than Leuthold Global. However, Leuthold E Investment is 1.03 times less risky than Leuthold Global. It trades about 0.52 of its potential returns per unit of risk. Leuthold Global Fund is currently generating about 0.47 per unit of risk. If you would invest 2,144 in Leuthold E Investment on November 2, 2024 and sell it today you would earn a total of 106.00 from holding Leuthold E Investment or generate 4.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.0% |
| Values | Daily Returns |
Leuthold E Investment vs. Leuthold Global Fund
Performance |
| Timeline |
| Leuthold E Investment |
| Leuthold Global |
Leuthold Core and Leuthold Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Leuthold Core and Leuthold Global
The main advantage of trading using opposite Leuthold Core and Leuthold Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Leuthold Core position performs unexpectedly, Leuthold Global 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 Leuthold Global will offset losses from the drop in Leuthold Global's long position.| Leuthold Core vs. Leuthold E Investment | Leuthold Core vs. Leuthold Select Industries | Leuthold Core vs. Hotchkis Wiley Small | Leuthold Core vs. Calvert Moderate Allocation |
| Leuthold Global vs. Blackrock Science Technology | Leuthold Global vs. Allianzgi Technology Fund | Leuthold Global vs. Blackrock Science Technology | Leuthold Global vs. Invesco Technology 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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