Correlation Between Meridian Contrarian and Muhlenkamp Fund
Can any of the company-specific risk be diversified away by investing in both Meridian Contrarian and Muhlenkamp 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 Muhlenkamp 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 Muhlenkamp Fund Institutional, you can compare the effects of market volatilities on Meridian Contrarian and Muhlenkamp 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 Muhlenkamp Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meridian Contrarian and Muhlenkamp Fund.
Diversification Opportunities for Meridian Contrarian and Muhlenkamp Fund
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between MERIDIAN and Muhlenkamp is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Meridian Trarian Fund and Muhlenkamp Fund Institutional in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Muhlenkamp Fund Inst 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 Muhlenkamp Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Muhlenkamp Fund Inst has no effect on the direction of Meridian Contrarian i.e., Meridian Contrarian and Muhlenkamp Fund go up and down completely randomly.
Pair Corralation between Meridian Contrarian and Muhlenkamp Fund
Assuming the 90 days horizon Meridian Contrarian is expected to generate 2.25 times less return on investment than Muhlenkamp Fund. In addition to that, Meridian Contrarian is 1.38 times more volatile than Muhlenkamp Fund Institutional. It trades about 0.02 of its total potential returns per unit of risk. Muhlenkamp Fund Institutional is currently generating about 0.07 per unit of volatility. If you would invest 5,854 in Muhlenkamp Fund Institutional on August 29, 2024 and sell it today you would earn a total of 1,602 from holding Muhlenkamp Fund Institutional or generate 27.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Meridian Trarian Fund vs. Muhlenkamp Fund Institutional
Performance |
| Timeline |
| Meridian Contrarian |
| Muhlenkamp Fund Inst |
Meridian Contrarian and Muhlenkamp Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meridian Contrarian and Muhlenkamp Fund
The main advantage of trading using opposite Meridian Contrarian and Muhlenkamp Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meridian Contrarian position performs unexpectedly, Muhlenkamp 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 Muhlenkamp Fund will offset losses from the drop in Muhlenkamp 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 |
| Muhlenkamp Fund vs. Dodge Cox Stock | Muhlenkamp Fund vs. American Mutual Fund | Muhlenkamp Fund vs. American Funds American | Muhlenkamp Fund vs. American Funds American |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |