Correlation Between The Merger and Hussman Strategic
Can any of the company-specific risk be diversified away by investing in both The Merger 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 The Merger and Hussman Strategic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Merger Fund and Hussman Strategic Growth, you can compare the effects of market volatilities on The Merger 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 The Merger with a short position of Hussman Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of The Merger and Hussman Strategic.
Diversification Opportunities for The Merger and Hussman Strategic
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between The and Hussman is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding The Merger Fund 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 The Merger 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 The Merger Fund 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 The Merger i.e., The Merger and Hussman Strategic go up and down completely randomly.
Pair Corralation between The Merger and Hussman Strategic
Assuming the 90 days horizon The Merger Fund is expected to generate 0.24 times more return on investment than Hussman Strategic. However, The Merger Fund is 4.1 times less risky than Hussman Strategic. It trades about 0.09 of its potential returns per unit of risk. Hussman Strategic Growth is currently generating about -0.06 per unit of risk. If you would invest 1,698 in The Merger Fund on August 25, 2024 and sell it today you would earn a total of 55.00 from holding The Merger Fund or generate 3.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Merger Fund vs. Hussman Strategic Growth
Performance |
| Timeline |
| Merger Fund |
| Hussman Strategic Growth |
The Merger and Hussman Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with The Merger and Hussman Strategic
The main advantage of trading using opposite The Merger and Hussman Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if The Merger 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.| The Merger vs. Strategic Advisers International | The Merger vs. Strategic Advisers Income | The Merger vs. Aquagold International | The Merger vs. Morningstar Unconstrained Allocation |
| Hussman Strategic vs. Artisan High Income | Hussman Strategic vs. Pace Municipal Fixed | Hussman Strategic vs. T Rowe Price | Hussman Strategic vs. Pace Municipal Fixed |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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