Correlation Between Cullen High and Environment

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

By analyzing existing cross correlation between Cullen High Dividend and Environment And Alternative, you can compare the effects of market volatilities on Cullen High and Environment 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 High with a short position of Environment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cullen High and Environment.

Diversification Opportunities for Cullen High and Environment

0.96

Correlation Coefficient

Cullen High  Environment

Almost no diversification

The 3 months correlation between Cullen and Environment is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Cullen High Dividend and Environment And Alternative in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Environment And Alte and Cullen High 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 High Dividend are associated (or correlated) with Environment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Environment And Alte has no effect on the direction of Cullen High i.e., Cullen High and Environment go up and down completely randomly.

Pair Corralation between Cullen High and Environment

Assuming the 90 days horizon Cullen High is expected to generate 1.02 times less return on investment than Environment. But when comparing it to its historical volatility, Cullen High Dividend is 1.6 times less risky than Environment. It trades about 0.25 of its potential returns per unit of risk. Environment And Alternative is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  4,104  in Environment And Alternative on May 27, 2025 and sell it today you would earn a total of  351.00  from holding Environment And Alternative or generate 8.55% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	98.44%
Values	Daily Returns

Cullen High Dividend  vs.  Environment And Alternative

Cullen High Dividend

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Cullen High Dividend are ranked lower than 19 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, Cullen High may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Environment And Alte

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Environment And Alternative are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Environment may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Cullen High and Environment

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

The idea behind Cullen High Dividend and Environment And Alternative 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.