Correlation Between Leuthold Select and Grizzly Short
Can any of the company-specific risk be diversified away by investing in both Leuthold Select and Grizzly Short 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 Select and Grizzly Short into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Leuthold Select Industries and Grizzly Short Fund, you can compare the effects of market volatilities on Leuthold Select and Grizzly Short 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 Select with a short position of Grizzly Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Leuthold Select and Grizzly Short.
Diversification Opportunities for Leuthold Select and Grizzly Short
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Leuthold and Grizzly is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Leuthold Select Industries and Grizzly Short Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grizzly Short and Leuthold Select 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 Select Industries are associated (or correlated) with Grizzly Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grizzly Short has no effect on the direction of Leuthold Select i.e., Leuthold Select and Grizzly Short go up and down completely randomly.
Pair Corralation between Leuthold Select and Grizzly Short
Assuming the 90 days horizon Leuthold Select Industries is expected to under-perform the Grizzly Short. In addition to that, Leuthold Select is 3.63 times more volatile than Grizzly Short Fund. It trades about -0.21 of its total potential returns per unit of risk. Grizzly Short Fund is currently generating about -0.25 per unit of volatility. If you would invest 558.00 in Grizzly Short Fund on September 14, 2024 and sell it today you would lose (27.00) from holding Grizzly Short Fund or give up 4.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Leuthold Select Industries vs. Grizzly Short Fund
Performance |
| Timeline |
| Leuthold Select Indu |
| Grizzly Short |
Leuthold Select and Grizzly Short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Leuthold Select and Grizzly Short
The main advantage of trading using opposite Leuthold Select and Grizzly Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Leuthold Select position performs unexpectedly, Grizzly Short 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 Grizzly Short will offset losses from the drop in Grizzly Short's long position.| Leuthold Select vs. Stone Ridge Diversified | Leuthold Select vs. Wealthbuilder Conservative Allocation | Leuthold Select vs. Tax Free Conservative Income | Leuthold Select vs. Calvert Conservative Allocation |
| Grizzly Short vs. Leuthold Global Fund | Grizzly Short vs. Leuthold Select Industries | Grizzly Short vs. Leuthold E Investment | Grizzly Short vs. Leuthold E Investment |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |