Correlation Between Pro-blend(r) Moderate and Pro-blend(r) Extended
Can any of the company-specific risk be diversified away by investing in both Pro-blend(r) Moderate and Pro-blend(r) Extended 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 Pro-blend(r) Moderate and Pro-blend(r) Extended into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pro Blend Moderate Term and Pro Blend Extended Term, you can compare the effects of market volatilities on Pro-blend(r) Moderate and Pro-blend(r) Extended 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 Pro-blend(r) Moderate with a short position of Pro-blend(r) Extended. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pro-blend(r) Moderate and Pro-blend(r) Extended.
Diversification Opportunities for Pro-blend(r) Moderate and Pro-blend(r) Extended
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Pro-blend(r) and Pro-blend(r) is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Pro Blend Moderate Term and Pro Blend Extended Term in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pro-blend(r) Extended and Pro-blend(r) Moderate 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 Pro Blend Moderate Term are associated (or correlated) with Pro-blend(r) Extended. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pro-blend(r) Extended has no effect on the direction of Pro-blend(r) Moderate i.e., Pro-blend(r) Moderate and Pro-blend(r) Extended go up and down completely randomly.
Pair Corralation between Pro-blend(r) Moderate and Pro-blend(r) Extended
Assuming the 90 days horizon Pro Blend Moderate Term is expected to generate 0.8 times more return on investment than Pro-blend(r) Extended. However, Pro Blend Moderate Term is 1.25 times less risky than Pro-blend(r) Extended. It trades about 0.15 of its potential returns per unit of risk. Pro Blend Extended Term is currently generating about 0.12 per unit of risk. If you would invest 1,446 in Pro Blend Moderate Term on June 8, 2025 and sell it today you would earn a total of 47.00 from holding Pro Blend Moderate Term or generate 3.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pro Blend Moderate Term vs. Pro Blend Extended Term
Performance |
| Timeline |
| Pro-blend(r) Moderate |
| Pro-blend(r) Extended |
Pro-blend(r) Moderate and Pro-blend(r) Extended Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pro-blend(r) Moderate and Pro-blend(r) Extended
The main advantage of trading using opposite Pro-blend(r) Moderate and Pro-blend(r) Extended positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pro-blend(r) Moderate position performs unexpectedly, Pro-blend(r) Extended 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 Pro-blend(r) Extended will offset losses from the drop in Pro-blend(r) Extended's long position.| Pro-blend(r) Moderate vs. Pro Blend Servative Term | Pro-blend(r) Moderate vs. Pro Blend Maximum Term | Pro-blend(r) Moderate vs. Greenspring Fund Retail | Pro-blend(r) Moderate vs. Pro Blend Extended Term |
| Pro-blend(r) Extended vs. Manning Napier Callodine | Pro-blend(r) Extended vs. Manning Napier Callodine | Pro-blend(r) Extended vs. Manning Napier Callodine | Pro-blend(r) Extended vs. Pro Blend Extended Term |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |