Correlation Between Hundredfold Select and Spectrum Low
Can any of the company-specific risk be diversified away by investing in both Hundredfold Select and Spectrum Low 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 Hundredfold Select and Spectrum Low into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hundredfold Select Alternative and Spectrum Low Volatility, you can compare the effects of market volatilities on Hundredfold Select and Spectrum Low 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 Hundredfold Select with a short position of Spectrum Low. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hundredfold Select and Spectrum Low.
Diversification Opportunities for Hundredfold Select and Spectrum Low
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hundredfold and SPECTRUM is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Hundredfold Select Alternative and Spectrum Low Volatility in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spectrum Low Volatility and Hundredfold 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 Hundredfold Select Alternative are associated (or correlated) with Spectrum Low. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spectrum Low Volatility has no effect on the direction of Hundredfold Select i.e., Hundredfold Select and Spectrum Low go up and down completely randomly.
Pair Corralation between Hundredfold Select and Spectrum Low
Assuming the 90 days horizon Hundredfold Select is expected to generate 5.04 times less return on investment than Spectrum Low. In addition to that, Hundredfold Select is 2.79 times more volatile than Spectrum Low Volatility. It trades about 0.02 of its total potential returns per unit of risk. Spectrum Low Volatility is currently generating about 0.3 per unit of volatility. If you would invest 2,363 in Spectrum Low Volatility on November 5, 2024 and sell it today you would earn a total of 12.00 from holding Spectrum Low Volatility or generate 0.51% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 94.74% |
Values | Daily Returns |
Hundredfold Select Alternative vs. Spectrum Low Volatility
Performance |
Timeline |
Hundredfold Select |
Spectrum Low Volatility |
Hundredfold Select and Spectrum Low Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hundredfold Select and Spectrum Low
The main advantage of trading using opposite Hundredfold Select and Spectrum Low positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hundredfold Select position performs unexpectedly, Spectrum Low 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 Spectrum Low will offset losses from the drop in Spectrum Low's long position.Hundredfold Select vs. Federated Emerging Market | Hundredfold Select vs. Kinetics Market Opportunities | Hundredfold Select vs. Balanced Strategy Fund | Hundredfold Select vs. Vanguard Developed Markets |
Spectrum Low vs. Ontrack E Fund | Spectrum Low vs. Hundredfold Select Alternative | Spectrum Low vs. Spectrum Advisors Preferred | Spectrum Low vs. Hundredfold Select Alternative |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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