Correlation Between Congress Mid and Congress Large
Can any of the company-specific risk be diversified away by investing in both Congress Mid and Congress Large 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 Congress Mid and Congress Large into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Congress Mid Cap and Congress Large Cap, you can compare the effects of market volatilities on Congress Mid and Congress Large 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 Congress Mid with a short position of Congress Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Congress Mid and Congress Large.
Diversification Opportunities for Congress Mid and Congress Large
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Congress and CONGRESS is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Congress Mid Cap and Congress Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Congress Large Cap and Congress Mid 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 Congress Mid Cap are associated (or correlated) with Congress Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Congress Large Cap has no effect on the direction of Congress Mid i.e., Congress Mid and Congress Large go up and down completely randomly.
Pair Corralation between Congress Mid and Congress Large
Assuming the 90 days horizon Congress Mid Cap is expected to under-perform the Congress Large. In addition to that, Congress Mid is 1.3 times more volatile than Congress Large Cap. It trades about -0.06 of its total potential returns per unit of risk. Congress Large Cap is currently generating about 0.01 per unit of volatility. If you would invest 5,075 in Congress Large Cap on August 26, 2025 and sell it today you would earn a total of 8.00 from holding Congress Large Cap or generate 0.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Congress Mid Cap vs. Congress Large Cap
Performance |
| Timeline |
| Congress Mid Cap |
| Congress Large Cap |
Congress Mid and Congress Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Congress Mid and Congress Large
The main advantage of trading using opposite Congress Mid and Congress Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Congress Mid position performs unexpectedly, Congress Large 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 Congress Large will offset losses from the drop in Congress Large's long position.| Congress Mid vs. Goldman Sachs Technology | Congress Mid vs. Franklin Biotechnology Discovery | Congress Mid vs. Pgim Jennison Technology | Congress Mid vs. Global Technology Portfolio |
| Congress Large vs. American Funds The | Congress Large vs. American Funds The | Congress Large vs. Growth Fund Of | Congress Large vs. Growth Fund Of |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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