Correlation Between CAPITAL and US Global
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By analyzing existing cross correlation between CAPITAL ONE FINANCIAL and US Global Investors, you can compare the effects of market volatilities on CAPITAL and US Global 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 CAPITAL with a short position of US Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of CAPITAL and US Global.
Diversification Opportunities for CAPITAL and US Global
Very weak diversification
The 3 months correlation between CAPITAL and GROW is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding CAPITAL ONE FINANCIAL and US Global Investors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US Global Investors and CAPITAL 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 CAPITAL ONE FINANCIAL are associated (or correlated) with US Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US Global Investors has no effect on the direction of CAPITAL i.e., CAPITAL and US Global go up and down completely randomly.
Pair Corralation between CAPITAL and US Global
Assuming the 90 days trading horizon CAPITAL ONE FINANCIAL is expected to under-perform the US Global. But the bond apears to be less risky and, when comparing its historical volatility, CAPITAL ONE FINANCIAL is 1.58 times less risky than US Global. The bond trades about -0.23 of its potential returns per unit of risk. The US Global Investors is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 240.00 in US Global Investors on August 24, 2024 and sell it today you would earn a total of 3.00 from holding US Global Investors or generate 1.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
CAPITAL ONE FINANCIAL vs. US Global Investors
Performance |
| Timeline |
| CAPITAL ONE FINANCIAL |
| US Global Investors |
CAPITAL and US Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CAPITAL and US Global
The main advantage of trading using opposite CAPITAL and US Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CAPITAL position performs unexpectedly, US Global 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 US Global will offset losses from the drop in US Global's long position.| CAPITAL vs. US Global Investors | CAPITAL vs. Ryman Hospitality Properties | CAPITAL vs. RadNet Inc | CAPITAL vs. Teleflex Incorporated |
| US Global vs. Gladstone Investment | US Global vs. PennantPark Floating Rate | US Global vs. Horizon Technology Finance | US Global vs. Stellus Capital Investment |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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