Correlation Between Counterpoint Tactical and Swan Defined

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

By analyzing existing cross correlation between Counterpoint Tactical Municipal and Swan Defined Risk, you can compare the effects of market volatilities on Counterpoint Tactical and Swan Defined 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 Counterpoint Tactical with a short position of Swan Defined. Check out your portfolio center. Please also check ongoing floating volatility patterns of Counterpoint Tactical and Swan Defined.

Diversification Opportunities for Counterpoint Tactical and Swan Defined

0.88

Correlation Coefficient

Counterpoint Tactical  Swan Defined

Very poor diversification

The 3 months correlation between Counterpoint and Swan is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Counterpoint Tactical Municipa and Swan Defined Risk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swan Defined Risk and Counterpoint Tactical 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 Counterpoint Tactical Municipal are associated (or correlated) with Swan Defined. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Swan Defined Risk has no effect on the direction of Counterpoint Tactical i.e., Counterpoint Tactical and Swan Defined go up and down completely randomly.

Pair Corralation between Counterpoint Tactical and Swan Defined

Assuming the 90 days horizon Counterpoint Tactical is expected to generate 2.22 times less return on investment than Swan Defined. But when comparing it to its historical volatility, Counterpoint Tactical Municipal is 2.77 times less risky than Swan Defined. It trades about 0.29 of its potential returns per unit of risk. Swan Defined Risk is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest  1,423  in Swan Defined Risk on July 8, 2025 and sell it today you would earn a total of  105.00  from holding Swan Defined Risk or generate 7.38% return on investment over 90 days.

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

Counterpoint Tactical Municipa  vs.  Swan Defined Risk

Counterpoint Tactical

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Counterpoint Tactical Municipal are ranked lower than 23 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Counterpoint Tactical is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Swan Defined Risk

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Swan Defined Risk are ranked lower than 18 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Swan Defined may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Pair Trading with Counterpoint Tactical and Swan Defined

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

The idea behind Counterpoint Tactical Municipal and Swan Defined Risk 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 CEOs Directory module to screen CEOs from public companies around the world.