Correlation Between Nebraska Municipal and Huber Capital
Can any of the company-specific risk be diversified away by investing in both Nebraska Municipal and Huber Capital 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 Nebraska Municipal and Huber Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nebraska Municipal Fund and Huber Capital Small, you can compare the effects of market volatilities on Nebraska Municipal and Huber Capital 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 Nebraska Municipal with a short position of Huber Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nebraska Municipal and Huber Capital.
Diversification Opportunities for Nebraska Municipal and Huber Capital
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Nebraska and Huber is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Nebraska Municipal Fund and Huber Capital Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huber Capital Small and Nebraska Municipal 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 Nebraska Municipal Fund are associated (or correlated) with Huber Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huber Capital Small has no effect on the direction of Nebraska Municipal i.e., Nebraska Municipal and Huber Capital go up and down completely randomly.
Pair Corralation between Nebraska Municipal and Huber Capital
Assuming the 90 days horizon Nebraska Municipal is expected to generate 6.22 times less return on investment than Huber Capital. But when comparing it to its historical volatility, Nebraska Municipal Fund is 5.16 times less risky than Huber Capital. It trades about 0.05 of its potential returns per unit of risk. Huber Capital Small is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 2,381 in Huber Capital Small on September 2, 2024 and sell it today you would earn a total of 652.00 from holding Huber Capital Small or generate 27.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nebraska Municipal Fund vs. Huber Capital Small
Performance |
| Timeline |
| Nebraska Municipal |
| Huber Capital Small |
Nebraska Municipal and Huber Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nebraska Municipal and Huber Capital
The main advantage of trading using opposite Nebraska Municipal and Huber Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nebraska Municipal position performs unexpectedly, Huber Capital 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 Huber Capital will offset losses from the drop in Huber Capital's long position.| Nebraska Municipal vs. Us Vector Equity | Nebraska Municipal vs. Scharf Fund Retail | Nebraska Municipal vs. Huber Capital Equity | Nebraska Municipal vs. Locorr Dynamic Equity |
| Huber Capital vs. Blue Current Global | Huber Capital vs. T Rowe Price | Huber Capital vs. Kinetics Global Fund | Huber Capital vs. Wisdomtree Siegel 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| CEOs Directory Screen CEOs from public companies around the world |