Correlation Between WHG FINVEST and Cshg Jhsf

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

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

Diversification Opportunities for WHG FINVEST and Cshg Jhsf

-0.84

Correlation Coefficient

WHG FINVEST  Cshg Jhsf

Pay attention - limited upside

The 3 months correlation between WHG and Cshg is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding WHG FINVEST SP and Cshg Jhsf Prime in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cshg Jhsf Prime and WHG FINVEST 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 WHG FINVEST SP are associated (or correlated) with Cshg Jhsf. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cshg Jhsf Prime has no effect on the direction of WHG FINVEST i.e., WHG FINVEST and Cshg Jhsf go up and down completely randomly.

Pair Corralation between WHG FINVEST and Cshg Jhsf

Assuming the 90 days trading horizon WHG FINVEST SP is expected to generate 0.03 times more return on investment than Cshg Jhsf. However, WHG FINVEST SP is 32.06 times less risky than Cshg Jhsf. It trades about 0.24 of its potential returns per unit of risk. Cshg Jhsf Prime is currently generating about -0.12 per unit of risk. If you would invest  123,612  in WHG FINVEST SP on October 25, 2024 and sell it today you would earn a total of  178.00  from holding WHG FINVEST SP or generate 0.14% return on investment over 90 days.

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

WHG FINVEST SP  vs.  Cshg Jhsf Prime

WHG FINVEST SP

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in WHG FINVEST SP are ranked lower than 14 (%) 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.

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.

Pair Trading with WHG FINVEST and Cshg Jhsf

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

The idea behind WHG FINVEST SP and Cshg Jhsf Prime 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.