Correlation Between Leuthold Select and Stone Ridge
Can any of the company-specific risk be diversified away by investing in both Leuthold Select and Stone Ridge 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 Stone Ridge 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 Stone Ridge Diversified, you can compare the effects of market volatilities on Leuthold Select and Stone Ridge 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 Stone Ridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Leuthold Select and Stone Ridge.
Diversification Opportunities for Leuthold Select and Stone Ridge
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Leuthold and Stone is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Leuthold Select Industries and Stone Ridge Diversified in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stone Ridge Diversified 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 Stone Ridge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stone Ridge Diversified has no effect on the direction of Leuthold Select i.e., Leuthold Select and Stone Ridge go up and down completely randomly.
Pair Corralation between Leuthold Select and Stone Ridge
Assuming the 90 days horizon Leuthold Select Industries is expected to generate 6.24 times more return on investment than Stone Ridge. However, Leuthold Select is 6.24 times more volatile than Stone Ridge Diversified. It trades about 0.03 of its potential returns per unit of risk. Stone Ridge Diversified is currently generating about 0.14 per unit of risk. If you would invest 3,279 in Leuthold Select Industries on September 14, 2024 and sell it today you would earn a total of 254.00 from holding Leuthold Select Industries or generate 7.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.63% |
| Values | Daily Returns |
Leuthold Select Industries vs. Stone Ridge Diversified
Performance |
| Timeline |
| Leuthold Select Indu |
| Stone Ridge Diversified |
Leuthold Select and Stone Ridge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Leuthold Select and Stone Ridge
The main advantage of trading using opposite Leuthold Select and Stone Ridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Leuthold Select position performs unexpectedly, Stone Ridge 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 Stone Ridge will offset losses from the drop in Stone Ridge'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 |
| Stone Ridge vs. Touchstone Premium Yield | Stone Ridge vs. Dws Government Money | Stone Ridge vs. Alliancebernstein National Municipal | Stone Ridge vs. T Rowe Price |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |