Correlation Between Cornerstone Strategic and HAL Trust

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

By analyzing existing cross correlation between Cornerstone Strategic Value and HAL Trust, you can compare the effects of market volatilities on Cornerstone Strategic and HAL Trust 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 Cornerstone Strategic with a short position of HAL Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cornerstone Strategic and HAL Trust.

Diversification Opportunities for Cornerstone Strategic and HAL Trust

0.79

Correlation Coefficient

Cornerstone Strategic  HAL Trust

Poor diversification

The 3 months correlation between Cornerstone and HAL is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Cornerstone Strategic Value and HAL Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HAL Trust and Cornerstone Strategic 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 Cornerstone Strategic Value are associated (or correlated) with HAL Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HAL Trust has no effect on the direction of Cornerstone Strategic i.e., Cornerstone Strategic and HAL Trust go up and down completely randomly.

Pair Corralation between Cornerstone Strategic and HAL Trust

Considering the 90-day investment horizon Cornerstone Strategic is expected to generate 1.45 times less return on investment than HAL Trust. But when comparing it to its historical volatility, Cornerstone Strategic Value is 2.09 times less risky than HAL Trust. It trades about 0.19 of its potential returns per unit of risk. HAL Trust is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  12,400  in HAL Trust on July 5, 2025 and sell it today you would earn a total of  1,200  from holding HAL Trust or generate 9.68% return on investment over 90 days.

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

Cornerstone Strategic Value  vs.  HAL Trust

Cornerstone Strategic

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Cornerstone Strategic Value are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. In spite of very weak essential indicators, Cornerstone Strategic may actually be approaching a critical reversion point that can send shares even higher in November 2025.

HAL Trust

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in HAL Trust are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak essential indicators, HAL Trust may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Pair Trading with Cornerstone Strategic and HAL Trust

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

The idea behind Cornerstone Strategic Value and HAL Trust 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..