Correlation Between Bear Profund and Basic Materials
Can any of the company-specific risk be diversified away by investing in both Bear Profund and Basic Materials 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 Bear Profund and Basic Materials into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bear Profund Bear and Basic Materials Ultrasector, you can compare the effects of market volatilities on Bear Profund and Basic Materials 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 Bear Profund with a short position of Basic Materials. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bear Profund and Basic Materials.
Diversification Opportunities for Bear Profund and Basic Materials
-0.95 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bear and Basic is -0.95. Overlapping area represents the amount of risk that can be diversified away by holding Bear Profund Bear and Basic Materials Ultrasector in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Basic Materials Ultr and Bear Profund 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 Bear Profund Bear are associated (or correlated) with Basic Materials. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Basic Materials Ultr has no effect on the direction of Bear Profund i.e., Bear Profund and Basic Materials go up and down completely randomly.
Pair Corralation between Bear Profund and Basic Materials
Assuming the 90 days horizon Bear Profund Bear is expected to under-perform the Basic Materials. But the mutual fund apears to be less risky and, when comparing its historical volatility, Bear Profund Bear is 1.6 times less risky than Basic Materials. The mutual fund trades about -0.07 of its potential returns per unit of risk. The Basic Materials Ultrasector is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 9,312 in Basic Materials Ultrasector on April 30, 2025 and sell it today you would earn a total of 1,842 from holding Basic Materials Ultrasector or generate 19.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bear Profund Bear vs. Basic Materials Ultrasector
Performance |
| Timeline |
| Bear Profund Bear |
| Basic Materials Ultr |
Bear Profund and Basic Materials Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bear Profund and Basic Materials
The main advantage of trading using opposite Bear Profund and Basic Materials positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bear Profund position performs unexpectedly, Basic Materials 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 Basic Materials will offset losses from the drop in Basic Materials' long position.| Bear Profund vs. American Mutual Fund | Bear Profund vs. Dreyfus Large Cap | Bear Profund vs. Neiman Large Cap | Bear Profund vs. Siit Large Cap |
| Basic Materials vs. Ashmore Emerging Markets | Basic Materials vs. The National Tax Free | Basic Materials vs. Bts Tactical Fixed | Basic Materials vs. Morningstar Defensive Bond |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |