Correlation Between Cullen Value and World Energy
Can any of the company-specific risk be diversified away by investing in both Cullen Value and World Energy 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 Cullen Value and World Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cullen Value Fund and World Energy Fund, you can compare the effects of market volatilities on Cullen Value and World Energy 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 Cullen Value with a short position of World Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cullen Value and World Energy.
Diversification Opportunities for Cullen Value and World Energy
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Cullen and World is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Cullen Value Fund and World Energy Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on World Energy and Cullen Value 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 Cullen Value Fund are associated (or correlated) with World Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of World Energy has no effect on the direction of Cullen Value i.e., Cullen Value and World Energy go up and down completely randomly.
Pair Corralation between Cullen Value and World Energy
Assuming the 90 days horizon Cullen Value is expected to generate 1.45 times less return on investment than World Energy. But when comparing it to its historical volatility, Cullen Value Fund is 1.58 times less risky than World Energy. It trades about 0.07 of its potential returns per unit of risk. World Energy Fund is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,221 in World Energy Fund on August 30, 2025 and sell it today you would earn a total of 567.00 from holding World Energy Fund or generate 46.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cullen Value Fund vs. World Energy Fund
Performance |
| Timeline |
| Cullen Value |
| World Energy |
Cullen Value and World Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cullen Value and World Energy
The main advantage of trading using opposite Cullen Value and World Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cullen Value position performs unexpectedly, World Energy 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 World Energy will offset losses from the drop in World Energy's long position.| Cullen Value vs. World Energy Fund | Cullen Value vs. Tortoise Energy Infrastructure | Cullen Value vs. Dreyfus Natural Resources | Cullen Value vs. Short Oil Gas |
| World Energy vs. Gmo Emerging Ntry | World Energy vs. Hartford Schroders Emerging | World Energy vs. Doubleline Emerging Markets | World Energy vs. Pace International Emerging |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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