Correlation Between Cutler Equity and Pro Blend
Can any of the company-specific risk be diversified away by investing in both Cutler Equity and Pro Blend 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 Cutler Equity and Pro Blend into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cutler Equity and Pro Blend Servative Term, you can compare the effects of market volatilities on Cutler Equity and Pro Blend 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 Cutler Equity with a short position of Pro Blend. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cutler Equity and Pro Blend.
Diversification Opportunities for Cutler Equity and Pro Blend
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Cutler and Pro is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Cutler Equity and Pro Blend Servative Term in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pro Blend Servative and Cutler Equity 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 Cutler Equity are associated (or correlated) with Pro Blend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pro Blend Servative has no effect on the direction of Cutler Equity i.e., Cutler Equity and Pro Blend go up and down completely randomly.
Pair Corralation between Cutler Equity and Pro Blend
Assuming the 90 days horizon Cutler Equity is expected to generate 1.97 times more return on investment than Pro Blend. However, Cutler Equity is 1.97 times more volatile than Pro Blend Servative Term. It trades about 0.23 of its potential returns per unit of risk. Pro Blend Servative Term is currently generating about 0.18 per unit of risk. If you would invest 2,724 in Cutler Equity on June 1, 2025 and sell it today you would earn a total of 200.00 from holding Cutler Equity or generate 7.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cutler Equity vs. Pro Blend Servative Term
Performance |
| Timeline |
| Cutler Equity |
| Pro Blend Servative |
Cutler Equity and Pro Blend Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cutler Equity and Pro Blend
The main advantage of trading using opposite Cutler Equity and Pro Blend positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cutler Equity position performs unexpectedly, Pro Blend 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 Pro Blend will offset losses from the drop in Pro Blend's long position.| Cutler Equity vs. The Gamco Global | Cutler Equity vs. Harbor Vertible Securities | Cutler Equity vs. Calamos Dynamic Convertible | Cutler Equity vs. Gabelli Convertible And |
| Pro Blend vs. Pro Blend Moderate Term | Pro Blend vs. Pro Blend Extended Term | Pro Blend vs. Pro Blend Maximum Term | Pro Blend vs. James Balanced Golden |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |