Correlation Between Hood River and Midcap Fund
Can any of the company-specific risk be diversified away by investing in both Hood River and Midcap Fund 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 Hood River and Midcap Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hood River New and Midcap Fund Institutional, you can compare the effects of market volatilities on Hood River and Midcap Fund 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 Hood River with a short position of Midcap Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hood River and Midcap Fund.
Diversification Opportunities for Hood River and Midcap Fund
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hood and Midcap is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Hood River New and Midcap Fund Institutional in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Midcap Fund Institutional and Hood River 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 Hood River New are associated (or correlated) with Midcap Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Midcap Fund Institutional has no effect on the direction of Hood River i.e., Hood River and Midcap Fund go up and down completely randomly.
Pair Corralation between Hood River and Midcap Fund
Assuming the 90 days horizon Hood River New is expected to generate 1.97 times more return on investment than Midcap Fund. However, Hood River is 1.97 times more volatile than Midcap Fund Institutional. It trades about 0.13 of its potential returns per unit of risk. Midcap Fund Institutional is currently generating about -0.1 per unit of risk. If you would invest 1,541 in Hood River New on September 5, 2025 and sell it today you would earn a total of 199.00 from holding Hood River New or generate 12.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hood River New vs. Midcap Fund Institutional
Performance |
| Timeline |
| Hood River New |
| Midcap Fund Institutional |
Hood River and Midcap Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hood River and Midcap Fund
The main advantage of trading using opposite Hood River and Midcap Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hood River position performs unexpectedly, Midcap Fund 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 Midcap Fund will offset losses from the drop in Midcap Fund's long position.| Hood River vs. Manager Directed Portfolios | Hood River vs. Hood River New | Hood River vs. Hood River Small Cap | Hood River vs. Hood River Small Cap |
| Midcap Fund vs. Wesmark Government Bond | Midcap Fund vs. Great West Government Mortgage | Midcap Fund vs. Aig Government Money | Midcap Fund vs. Long Term Government Fund |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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