Correlation Between Counterpoint Tactical and Floating Rate
Can any of the company-specific risk be diversified away by investing in both Counterpoint Tactical and Floating Rate 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 Counterpoint Tactical and Floating Rate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Counterpoint Tactical Municipal and Floating Rate Fund, you can compare the effects of market volatilities on Counterpoint Tactical and Floating Rate 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 Counterpoint Tactical with a short position of Floating Rate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Counterpoint Tactical and Floating Rate.
Diversification Opportunities for Counterpoint Tactical and Floating Rate
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Counterpoint and Floating is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Counterpoint Tactical Municipa and Floating Rate Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Floating Rate and Counterpoint Tactical 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 Counterpoint Tactical Municipal are associated (or correlated) with Floating Rate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Floating Rate has no effect on the direction of Counterpoint Tactical i.e., Counterpoint Tactical and Floating Rate go up and down completely randomly.
Pair Corralation between Counterpoint Tactical and Floating Rate
Assuming the 90 days horizon Counterpoint Tactical Municipal is expected to generate 2.85 times more return on investment than Floating Rate. However, Counterpoint Tactical is 2.85 times more volatile than Floating Rate Fund. It trades about 0.08 of its potential returns per unit of risk. Floating Rate Fund is currently generating about 0.22 per unit of risk. If you would invest 1,088 in Counterpoint Tactical Municipal on August 29, 2024 and sell it today you would earn a total of 7.00 from holding Counterpoint Tactical Municipal or generate 0.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Counterpoint Tactical Municipa vs. Floating Rate Fund
Performance |
| Timeline |
| Counterpoint Tactical |
| Floating Rate |
Counterpoint Tactical and Floating Rate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Counterpoint Tactical and Floating Rate
The main advantage of trading using opposite Counterpoint Tactical and Floating Rate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Counterpoint Tactical position performs unexpectedly, Floating Rate 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 Floating Rate will offset losses from the drop in Floating Rate's long position.| Counterpoint Tactical vs. Nuveen High Yield | Counterpoint Tactical vs. Nuveen High Yield | Counterpoint Tactical vs. Nuveen High Yield | Counterpoint Tactical vs. American High Income Municipal |
| Floating Rate vs. Gamco Natural Resources | Floating Rate vs. Ivy Natural Resources | Floating Rate vs. Goldman Sachs Mlp | Floating Rate vs. Franklin Natural Resources |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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