Correlation Between Cullen Enhanced and Rare Global
Can any of the company-specific risk be diversified away by investing in both Cullen Enhanced and Rare Global 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 Enhanced and Rare Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cullen Enhanced Equity and Rare Global Infrastructure, you can compare the effects of market volatilities on Cullen Enhanced and Rare Global 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 Enhanced with a short position of Rare Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cullen Enhanced and Rare Global.
Diversification Opportunities for Cullen Enhanced and Rare Global
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cullen and Rare is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Cullen Enhanced Equity and Rare Global Infrastructure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rare Global Infrastr and Cullen Enhanced 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 Enhanced Equity are associated (or correlated) with Rare Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rare Global Infrastr has no effect on the direction of Cullen Enhanced i.e., Cullen Enhanced and Rare Global go up and down completely randomly.
Pair Corralation between Cullen Enhanced and Rare Global
Assuming the 90 days horizon Cullen Enhanced Equity is expected to under-perform the Rare Global. In addition to that, Cullen Enhanced is 1.11 times more volatile than Rare Global Infrastructure. It trades about -0.08 of its total potential returns per unit of risk. Rare Global Infrastructure is currently generating about 0.13 per unit of volatility. If you would invest 1,455 in Rare Global Infrastructure on August 20, 2025 and sell it today you would earn a total of 63.00 from holding Rare Global Infrastructure or generate 4.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cullen Enhanced Equity vs. Rare Global Infrastructure
Performance |
| Timeline |
| Cullen Enhanced Equity |
| Rare Global Infrastr |
Cullen Enhanced and Rare Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cullen Enhanced and Rare Global
The main advantage of trading using opposite Cullen Enhanced and Rare Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cullen Enhanced position performs unexpectedly, Rare Global 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 Rare Global will offset losses from the drop in Rare Global's long position.| Cullen Enhanced vs. Royce Dividend Value | Cullen Enhanced vs. Rare Global Infrastructure | Cullen Enhanced vs. Rare Global Infrastructure | Cullen Enhanced vs. Brandywineglobal Globalome Opportunities |
| Rare Global vs. Rare Global Infrastructure | Rare Global vs. Transamerica Mlp Energy | Rare Global vs. Neuberger Berman Mid | Rare Global vs. John Hancock Income |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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