Correlation Between Hawaii Municipal and Counterpoint Tactical

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

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

Diversification Opportunities for Hawaii Municipal and Counterpoint Tactical

0.49

Correlation Coefficient

Hawaii Municipal  Counterpoint Tactical

Very weak diversification

The 3 months correlation between HAWAII and Counterpoint is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Hawaii Municipal Bond and Counterpoint Tactical Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Counterpoint Tactical and Hawaii Municipal 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 Hawaii Municipal Bond are associated (or correlated) with Counterpoint Tactical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Counterpoint Tactical has no effect on the direction of Hawaii Municipal i.e., Hawaii Municipal and Counterpoint Tactical go up and down completely randomly.

Pair Corralation between Hawaii Municipal and Counterpoint Tactical

If you would invest  943.00  in Hawaii Municipal Bond on August 28, 2025 and sell it today you would earn a total of  60.00  from holding Hawaii Municipal Bond or generate 6.36% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	0.0%
Values	Daily Returns

Hawaii Municipal Bond  vs.  Counterpoint Tactical Income

Hawaii Municipal Bond

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Hawaii Municipal Bond are ranked lower than 30 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Hawaii Municipal is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Counterpoint Tactical

Risk-Adjusted Performance

Mild

Over the last 90 days Counterpoint Tactical Income has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Counterpoint Tactical is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Hawaii Municipal and Counterpoint Tactical

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

The idea behind Hawaii Municipal Bond and Counterpoint Tactical Income 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 Transaction History module to view history of all your transactions and understand their impact on performance.