Correlation Between Cshg Jhsf and WHG FINVEST

Can any of the company-specific risk be diversified away by investing in both Cshg Jhsf and WHG FINVEST 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 Cshg Jhsf and WHG FINVEST into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Cshg Jhsf Prime and WHG FINVEST SP, you can compare the effects of market volatilities on Cshg Jhsf and WHG FINVEST 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 Cshg Jhsf with a short position of WHG FINVEST. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cshg Jhsf and WHG FINVEST.

Diversification Opportunities for Cshg Jhsf and WHG FINVEST

-0.95

Correlation Coefficient

Cshg Jhsf  WHG FINVEST

Pay attention - limited upside

The 3 months correlation between Cshg and WHG is -0.95. Overlapping area represents the amount of risk that can be diversified away by holding Cshg Jhsf Prime and WHG FINVEST SP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WHG FINVEST SP and Cshg Jhsf 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 Cshg Jhsf Prime are associated (or correlated) with WHG FINVEST. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WHG FINVEST SP has no effect on the direction of Cshg Jhsf i.e., Cshg Jhsf and WHG FINVEST go up and down completely randomly.

Pair Corralation between Cshg Jhsf and WHG FINVEST

Assuming the 90 days trading horizon Cshg Jhsf Prime is expected to generate 37.69 times more return on investment than WHG FINVEST. However, Cshg Jhsf is 37.69 times more volatile than WHG FINVEST SP. It trades about 0.06 of its potential returns per unit of risk. WHG FINVEST SP is currently generating about 0.23 per unit of risk. If you would invest  12,049  in Cshg Jhsf Prime on October 10, 2024 and sell it today you would earn a total of  157.00  from holding Cshg Jhsf Prime or generate 1.3% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Cshg Jhsf Prime  vs.  WHG FINVEST SP

Cshg Jhsf Prime

Risk-Adjusted Performance

0 of 100

Very Weak

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

WHG FINVEST SP

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in WHG FINVEST SP are ranked lower than 13 (%) of all funds and portfolios of funds over the last 90 days. Despite somewhat weak fundamental indicators, WHG FINVEST may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Cshg Jhsf and WHG FINVEST

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

The idea behind Cshg Jhsf Prime and WHG FINVEST SP 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.