Correlation Between Leuthold Select and Hussman Strategic
Can any of the company-specific risk be diversified away by investing in both Leuthold Select and Hussman Strategic 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 Hussman Strategic 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 Hussman Strategic Growth, you can compare the effects of market volatilities on Leuthold Select and Hussman Strategic 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 Hussman Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Leuthold Select and Hussman Strategic.
Diversification Opportunities for Leuthold Select and Hussman Strategic
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Leuthold and Hussman is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Leuthold Select Industries and Hussman Strategic Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hussman Strategic Growth 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 Hussman Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hussman Strategic Growth has no effect on the direction of Leuthold Select i.e., Leuthold Select and Hussman Strategic go up and down completely randomly.
Pair Corralation between Leuthold Select and Hussman Strategic
Assuming the 90 days horizon Leuthold Select Industries is expected to under-perform the Hussman Strategic. In addition to that, Leuthold Select is 7.45 times more volatile than Hussman Strategic Growth. It trades about -0.21 of its total potential returns per unit of risk. Hussman Strategic Growth is currently generating about 0.08 per unit of volatility. If you would invest 545.00 in Hussman Strategic Growth on September 14, 2024 and sell it today you would earn a total of 4.00 from holding Hussman Strategic Growth or generate 0.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Leuthold Select Industries vs. Hussman Strategic Growth
Performance |
| Timeline |
| Leuthold Select Indu |
| Hussman Strategic Growth |
Leuthold Select and Hussman Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Leuthold Select and Hussman Strategic
The main advantage of trading using opposite Leuthold Select and Hussman Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Leuthold Select position performs unexpectedly, Hussman Strategic 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 Hussman Strategic will offset losses from the drop in Hussman Strategic'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 |
| Hussman Strategic vs. Hussman Strategic Allocation | Hussman Strategic vs. Hussman Strategic Dividend | Hussman Strategic vs. Hussman Strategic Total | Hussman Strategic vs. American Funds Global |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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