Correlation Between Profunds Ultrashort and Cullen Value
Can any of the company-specific risk be diversified away by investing in both Profunds Ultrashort and Cullen Value 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 Profunds Ultrashort and Cullen Value into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Profunds Ultrashort Nasdaq 100 and Cullen Value Fund, you can compare the effects of market volatilities on Profunds Ultrashort and Cullen Value 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 Profunds Ultrashort with a short position of Cullen Value. Check out your portfolio center. Please also check ongoing floating volatility patterns of Profunds Ultrashort and Cullen Value.
Diversification Opportunities for Profunds Ultrashort and Cullen Value
-0.91 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ProFunds and CULLEN is -0.91. Overlapping area represents the amount of risk that can be diversified away by holding Profunds Ultrashort Nasdaq 100 and Cullen Value Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cullen Value and Profunds Ultrashort 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 Profunds Ultrashort Nasdaq 100 are associated (or correlated) with Cullen Value. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cullen Value has no effect on the direction of Profunds Ultrashort i.e., Profunds Ultrashort and Cullen Value go up and down completely randomly.
Pair Corralation between Profunds Ultrashort and Cullen Value
Assuming the 90 days horizon Profunds Ultrashort Nasdaq 100 is expected to under-perform the Cullen Value. In addition to that, Profunds Ultrashort is 2.84 times more volatile than Cullen Value Fund. It trades about -0.02 of its total potential returns per unit of risk. Cullen Value Fund is currently generating about 0.21 per unit of volatility. If you would invest 1,424 in Cullen Value Fund on August 30, 2024 and sell it today you would earn a total of 51.00 from holding Cullen Value Fund or generate 3.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Profunds Ultrashort Nasdaq 100 vs. Cullen Value Fund
Performance |
| Timeline |
| Profunds Ultrashort |
| Cullen Value |
Profunds Ultrashort and Cullen Value Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Profunds Ultrashort and Cullen Value
The main advantage of trading using opposite Profunds Ultrashort and Cullen Value positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Profunds Ultrashort position performs unexpectedly, Cullen Value 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 Cullen Value will offset losses from the drop in Cullen Value's long position.| Profunds Ultrashort vs. Ab Bond Inflation | Profunds Ultrashort vs. Legg Mason Partners | Profunds Ultrashort vs. Ep Emerging Markets | Profunds Ultrashort vs. Black Oak Emerging |
| Cullen Value vs. Nuveen Massachusetts Municipal | Cullen Value vs. Barings Active Short | Cullen Value vs. Ab Impact Municipal | Cullen Value vs. Nebraska Municipal Fund |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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