Correlation Between Hotchkis Wiley and International Growth
Can any of the company-specific risk be diversified away by investing in both Hotchkis Wiley and International Growth 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 Hotchkis Wiley and International Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hotchkis Wiley Value and International Growth Fund, you can compare the effects of market volatilities on Hotchkis Wiley and International Growth 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 Hotchkis Wiley with a short position of International Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hotchkis Wiley and International Growth.
Diversification Opportunities for Hotchkis Wiley and International Growth
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hotchkis and International is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Hotchkis Wiley Value and International Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Growth and Hotchkis Wiley 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 Hotchkis Wiley Value are associated (or correlated) with International Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Growth has no effect on the direction of Hotchkis Wiley i.e., Hotchkis Wiley and International Growth go up and down completely randomly.
Pair Corralation between Hotchkis Wiley and International Growth
Assuming the 90 days horizon Hotchkis Wiley is expected to generate 1.55 times less return on investment than International Growth. But when comparing it to its historical volatility, Hotchkis Wiley Value is 1.06 times less risky than International Growth. It trades about 0.25 of its potential returns per unit of risk. International Growth Fund is currently generating about 0.37 of returns per unit of risk over similar time horizon. If you would invest 1,216 in International Growth Fund on February 20, 2024 and sell it today you would earn a total of 72.00 from holding International Growth Fund or generate 5.92% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Hotchkis Wiley Value vs. International Growth Fund
Performance |
Timeline |
Hotchkis Wiley Value |
International Growth |
Hotchkis Wiley and International Growth Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hotchkis Wiley and International Growth
The main advantage of trading using opposite Hotchkis Wiley and International Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hotchkis Wiley position performs unexpectedly, International Growth 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 International Growth will offset losses from the drop in International Growth's long position.Hotchkis Wiley vs. American Mutual Fund | Hotchkis Wiley vs. HUMANA INC | Hotchkis Wiley vs. Aquagold International | Hotchkis Wiley vs. Barloworld Ltd ADR |
International Growth vs. Europacific Growth Fund | International Growth vs. HUMANA INC | International Growth vs. Aquagold International | International Growth vs. Barloworld Ltd ADR |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
Stocks Directory Find actively traded stocks across global markets | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
Global Correlations Find global opportunities by holding instruments from different markets | |
Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |