Correlation Between Woman In and Secured Options

Can any of the company-specific risk be diversified away by investing in both Woman In and Secured Options 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 Woman In and Secured Options into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Woman In Leadership and Secured Options Portfolio, you can compare the effects of market volatilities on Woman In and Secured Options 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 Woman In with a short position of Secured Options. Check out your portfolio center. Please also check ongoing floating volatility patterns of Woman In and Secured Options.

Diversification Opportunities for Woman In and Secured Options

0.96

Correlation Coefficient

Woman In  Secured Options

Almost no diversification

The 3 months correlation between Woman and Secured is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Woman In Leadership and Secured Options Portfolio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Secured Options Portfolio and Woman In 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 Woman In Leadership are associated (or correlated) with Secured Options. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Secured Options Portfolio has no effect on the direction of Woman In i.e., Woman In and Secured Options go up and down completely randomly.

Pair Corralation between Woman In and Secured Options

Assuming the 90 days horizon Woman In Leadership is expected to under-perform the Secured Options. In addition to that, Woman In is 1.21 times more volatile than Secured Options Portfolio. It trades about -0.16 of its total potential returns per unit of risk. Secured Options Portfolio is currently generating about -0.16 per unit of volatility. If you would invest  1,562  in Secured Options Portfolio on December 11, 2024 and sell it today you would lose (206.00) from holding Secured Options Portfolio or give up 13.19% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Woman In Leadership  vs.  Secured Options Portfolio

Woman In Leadership

Risk-Adjusted Performance

Very Weak

Over the last 90 days Woman In Leadership has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's essential indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Secured Options Portfolio

Risk-Adjusted Performance

Very Weak

Over the last 90 days Secured Options Portfolio has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Pair Trading with Woman In and Secured Options

The main advantage of trading using opposite Woman In and Secured Options positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Woman In position performs unexpectedly, Secured Options 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 Secured Options will offset losses from the drop in Secured Options' long position.

The idea behind Woman In Leadership and Secured Options Portfolio pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.