Correlation Between Smead Value and Champlain Mid
Can any of the company-specific risk be diversified away by investing in both Smead Value and Champlain Mid 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 Champlain Mid 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 Champlain Mid Cap, you can compare the effects of market volatilities on Smead Value and Champlain Mid 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 Champlain Mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Smead Value and Champlain Mid.
Diversification Opportunities for Smead Value and Champlain Mid
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Smead and Champlain is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Smead Value Fund and Champlain Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Champlain Mid 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 Champlain Mid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Champlain Mid Cap has no effect on the direction of Smead Value i.e., Smead Value and Champlain Mid go up and down completely randomly.
Pair Corralation between Smead Value and Champlain Mid
Assuming the 90 days horizon Smead Value Fund is expected to under-perform the Champlain Mid. But the mutual fund apears to be less risky and, when comparing its historical volatility, Smead Value Fund is 1.41 times less risky than Champlain Mid. The mutual fund trades about -0.01 of its potential returns per unit of risk. The Champlain Mid Cap is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 2,326 in Champlain Mid Cap on October 26, 2024 and sell it today you would earn a total of 50.00 from holding Champlain Mid Cap or generate 2.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Smead Value Fund vs. Champlain Mid Cap
Performance |
| Timeline |
| Smead Value Fund |
| Champlain Mid Cap |
Smead Value and Champlain Mid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Smead Value and Champlain Mid
The main advantage of trading using opposite Smead Value and Champlain Mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Smead Value position performs unexpectedly, Champlain Mid 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 Champlain Mid will offset losses from the drop in Champlain Mid'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 |
| Champlain Mid vs. Champlain Small Pany | Champlain Mid vs. T Rowe Price | Champlain Mid vs. American Mutual Fund | Champlain Mid vs. Loomis Sayles 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |