Correlation Between Meridian Contrarian and Clipper Fund
Can any of the company-specific risk be diversified away by investing in both Meridian Contrarian and Clipper Fund 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 Meridian Contrarian and Clipper Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Meridian Trarian Fund and Clipper Fund Inc, you can compare the effects of market volatilities on Meridian Contrarian and Clipper Fund 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 Meridian Contrarian with a short position of Clipper Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meridian Contrarian and Clipper Fund.
Diversification Opportunities for Meridian Contrarian and Clipper Fund
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Meridian and Clipper is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Meridian Trarian Fund and Clipper Fund Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clipper Fund and Meridian Contrarian 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 Meridian Trarian Fund are associated (or correlated) with Clipper Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clipper Fund has no effect on the direction of Meridian Contrarian i.e., Meridian Contrarian and Clipper Fund go up and down completely randomly.
Pair Corralation between Meridian Contrarian and Clipper Fund
Assuming the 90 days horizon Meridian Trarian Fund is expected to generate 0.97 times more return on investment than Clipper Fund. However, Meridian Trarian Fund is 1.03 times less risky than Clipper Fund. It trades about 0.19 of its potential returns per unit of risk. Clipper Fund Inc is currently generating about 0.13 per unit of risk. If you would invest 3,896 in Meridian Trarian Fund on August 25, 2024 and sell it today you would earn a total of 327.00 from holding Meridian Trarian Fund or generate 8.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Meridian Trarian Fund vs. Clipper Fund Inc
Performance |
| Timeline |
| Meridian Contrarian |
| Clipper Fund |
Meridian Contrarian and Clipper Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meridian Contrarian and Clipper Fund
The main advantage of trading using opposite Meridian Contrarian and Clipper Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meridian Contrarian position performs unexpectedly, Clipper Fund 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 Clipper Fund will offset losses from the drop in Clipper Fund's long position.| Meridian Contrarian vs. Meridian Growth Fund | Meridian Contrarian vs. Clipper Fund Inc | Meridian Contrarian vs. Mairs Power Growth | Meridian Contrarian vs. Thompson Largecap Fund |
| Clipper Fund vs. Value Fund Value | Clipper Fund vs. Meridian Trarian Fund | Clipper Fund vs. Longleaf Partners Fund | Clipper Fund vs. Mairs Power Growth |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |