Correlation Between Smead Value and Cardinal Small
Can any of the company-specific risk be diversified away by investing in both Smead Value and Cardinal Small 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 Smead Value and Cardinal Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Smead Value Fund and Cardinal Small Cap, you can compare the effects of market volatilities on Smead Value and Cardinal Small 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 Smead Value with a short position of Cardinal Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Smead Value and Cardinal Small.
Diversification Opportunities for Smead Value and Cardinal Small
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Smead and Cardinal is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Smead Value Fund and Cardinal Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cardinal Small Cap and Smead Value 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 Smead Value Fund are associated (or correlated) with Cardinal Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cardinal Small Cap has no effect on the direction of Smead Value i.e., Smead Value and Cardinal Small go up and down completely randomly.
Pair Corralation between Smead Value and Cardinal Small
If you would invest 7,992 in Smead Value Fund on November 7, 2024 and sell it today you would earn a total of 122.00 from holding Smead Value Fund or generate 1.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Smead Value Fund vs. Cardinal Small Cap
Performance |
| Timeline |
| Smead Value Fund |
| Cardinal Small Cap |
Smead Value and Cardinal Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Smead Value and Cardinal Small
The main advantage of trading using opposite Smead Value and Cardinal Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Smead Value position performs unexpectedly, Cardinal Small 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 Cardinal Small will offset losses from the drop in Cardinal Small's long position.| Smead Value vs. Matthew 25 Fund | Smead Value vs. Baron Real Estate | Smead Value vs. Buffalo Emerging Opportunities | Smead Value vs. Eventide Gilead Fund |
| Cardinal Small vs. Rbc International Small | Cardinal Small vs. Praxis Small Cap | Cardinal Small vs. Needham Small Cap | Cardinal Small vs. Oklahoma College Savings |
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
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |