Correlation Between Arrow Managed and Leuthold Global

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

By analyzing existing cross correlation between Arrow Managed Futures and Leuthold Global Fund, you can compare the effects of market volatilities on Arrow Managed and Leuthold 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 Arrow Managed with a short position of Leuthold Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arrow Managed and Leuthold Global.

Diversification Opportunities for Arrow Managed and Leuthold Global

0.1

Correlation Coefficient

Arrow Managed  Leuthold Global

Average diversification

The 3 months correlation between Arrow and Leuthold is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Arrow Managed Futures and Leuthold Global Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leuthold Global and Arrow Managed 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 Arrow Managed Futures are associated (or correlated) with Leuthold Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leuthold Global has no effect on the direction of Arrow Managed i.e., Arrow Managed and Leuthold Global go up and down completely randomly.

Pair Corralation between Arrow Managed and Leuthold Global

Assuming the 90 days horizon Arrow Managed Futures is expected to generate 1.29 times more return on investment than Leuthold Global. However, Arrow Managed is 1.29 times more volatile than Leuthold Global Fund. It trades about 0.16 of its potential returns per unit of risk. Leuthold Global Fund is currently generating about 0.15 per unit of risk. If you would invest  510.00  in Arrow Managed Futures on September 6, 2025 and sell it today you would earn a total of  74.00  from holding Arrow Managed Futures or generate 14.51% return on investment over 90 days.

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

Arrow Managed Futures  vs.  Leuthold Global Fund

Arrow Managed Futures

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Arrow Managed Futures 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, Arrow Managed showed solid returns over the last few months and may actually be approaching a breakup point.

Leuthold Global

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Leuthold Global Fund are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak essential indicators, Leuthold Global may actually be approaching a critical reversion point that can send shares even higher in January 2026.

Pair Trading with Arrow Managed and Leuthold Global

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

The idea behind Arrow Managed Futures and Leuthold Global Fund 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.