Correlation Between Cullen Value and Lsv Global

Can any of the company-specific risk be diversified away by investing in both Cullen Value and Lsv 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 Value and Lsv Global 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 Lsv Global Value, you can compare the effects of market volatilities on Cullen Value and Lsv 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 Value with a short position of Lsv Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cullen Value and Lsv Global.

Diversification Opportunities for Cullen Value and Lsv Global

0.99

Correlation Coefficient

Cullen Value  Lsv Global

No risk reduction

The 3 months correlation between Cullen and Lsv is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Cullen Value Fund and Lsv Global Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lsv Global Value 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 Lsv Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lsv Global Value has no effect on the direction of Cullen Value i.e., Cullen Value and Lsv Global go up and down completely randomly.

Pair Corralation between Cullen Value and Lsv Global

Assuming the 90 days horizon Cullen Value Fund is expected to generate 0.99 times more return on investment than Lsv Global. However, Cullen Value Fund is 1.01 times less risky than Lsv Global. It trades about 0.19 of its potential returns per unit of risk. Lsv Global Value is currently generating about 0.16 per unit of risk. If you would invest  1,341  in Cullen Value Fund on May 5, 2025 and sell it today you would earn a total of  117.00  from holding Cullen Value Fund or generate 8.72% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Cullen Value Fund  vs.  Lsv Global Value

Cullen Value

Risk-Adjusted Performance

Good

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

Lsv Global Value

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Lsv Global Value 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, Lsv Global may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Cullen Value and Lsv Global

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

The idea behind Cullen Value Fund and Lsv Global Value 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.