Correlation Between Active International and Monteagle Select

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Active International and Monteagle Select 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 Active International and Monteagle Select into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Active International Allocation and Monteagle Select Value, you can compare the effects of market volatilities on Active International and Monteagle Select 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 Active International with a short position of Monteagle Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Active International and Monteagle Select.

Diversification Opportunities for Active International and Monteagle Select

0.84
  Correlation Coefficient

Very poor diversification

The 3 months correlation between Active and Monteagle is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Active International Allocatio and Monteagle Select Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Monteagle Select Value and Active International 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 Active International Allocation are associated (or correlated) with Monteagle Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Monteagle Select Value has no effect on the direction of Active International i.e., Active International and Monteagle Select go up and down completely randomly.

Pair Corralation between Active International and Monteagle Select

Assuming the 90 days horizon Active International is expected to generate 1.04 times less return on investment than Monteagle Select. But when comparing it to its historical volatility, Active International Allocation is 1.62 times less risky than Monteagle Select. It trades about 0.23 of its potential returns per unit of risk. Monteagle Select Value is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  999.00  in Monteagle Select Value on May 1, 2025 and sell it today you would earn a total of  95.00  from holding Monteagle Select Value or generate 9.51% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy98.39%
ValuesDaily Returns

Active International Allocatio  vs.  Monteagle Select Value

 Performance 
       Timeline  
Active International 

Risk-Adjusted Performance

Solid

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Active International Allocation are ranked lower than 18 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, Active International may actually be approaching a critical reversion point that can send shares even higher in August 2025.
Monteagle Select Value 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Monteagle Select Value are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Monteagle Select may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Active International and Monteagle Select Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Active International and Monteagle Select

The main advantage of trading using opposite Active International and Monteagle Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Active International position performs unexpectedly, Monteagle Select 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 Monteagle Select will offset losses from the drop in Monteagle Select's long position.
The idea behind Active International Allocation and Monteagle Select 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.
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.

Other Complementary Tools

Equity Search
Search for actively traded equities including funds and ETFs from over 30 global markets
Content Syndication
Quickly integrate customizable finance content to your own investment portal
Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
Latest Portfolios
Quick portfolio dashboard that showcases your latest portfolios
Pair Correlation
Compare performance and examine fundamental relationship between any two equity instruments