Correlation Between Grant Park and 1290 High
Can any of the company-specific risk be diversified away by investing in both Grant Park and 1290 High 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 Grant Park and 1290 High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grant Park Multi and 1290 High Yield, you can compare the effects of market volatilities on Grant Park and 1290 High 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 Grant Park with a short position of 1290 High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grant Park and 1290 High.
Diversification Opportunities for Grant Park and 1290 High
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Grant and 1290 is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Grant Park Multi and 1290 High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 1290 High Yield and Grant Park 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 Grant Park Multi are associated (or correlated) with 1290 High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 1290 High Yield has no effect on the direction of Grant Park i.e., Grant Park and 1290 High go up and down completely randomly.
Pair Corralation between Grant Park and 1290 High
Assuming the 90 days horizon Grant Park Multi is expected to under-perform the 1290 High. In addition to that, Grant Park is 3.69 times more volatile than 1290 High Yield. It trades about -0.07 of its total potential returns per unit of risk. 1290 High Yield is currently generating about 0.17 per unit of volatility. If you would invest 849.00 in 1290 High Yield on September 17, 2024 and sell it today you would earn a total of 11.00 from holding 1290 High Yield or generate 1.3% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Grant Park Multi vs. 1290 High Yield
Performance |
Timeline |
Grant Park Multi |
1290 High Yield |
Grant Park and 1290 High Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Grant Park and 1290 High
The main advantage of trading using opposite Grant Park and 1290 High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grant Park position performs unexpectedly, 1290 High 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 1290 High will offset losses from the drop in 1290 High's long position.Grant Park vs. Grant Park Multi | Grant Park vs. Grant Park Multi | Grant Park vs. Blackrock Alternative Capital | Grant Park vs. Asg Managed Futures |
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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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