Correlation Between Qs International and Profunds Large
Can any of the company-specific risk be diversified away by investing in both Qs International and Profunds 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 Qs International and Profunds Large into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Qs International Equity and Profunds Large Cap Growth, you can compare the effects of market volatilities on Qs International and Profunds 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 Qs International with a short position of Profunds Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qs International and Profunds Large.
Diversification Opportunities for Qs International and Profunds Large
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between LMEAX and Profunds is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Qs International Equity and Profunds Large Cap Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Profunds Large Cap and Qs International 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 Qs International Equity are associated (or correlated) with Profunds Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Profunds Large Cap has no effect on the direction of Qs International i.e., Qs International and Profunds Large go up and down completely randomly.
Pair Corralation between Qs International and Profunds Large
Assuming the 90 days horizon Qs International Equity is expected to under-perform the Profunds Large. In addition to that, Qs International is 2.67 times more volatile than Profunds Large Cap Growth. It trades about -0.07 of its total potential returns per unit of risk. Profunds Large Cap Growth is currently generating about 0.0 per unit of volatility. If you would invest 4,129 in Profunds Large Cap Growth on September 25, 2025 and sell it today you would lose (6.00) from holding Profunds Large Cap Growth or give up 0.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qs International Equity vs. Profunds Large Cap Growth
Performance |
| Timeline |
| Qs International Equity |
| Profunds Large Cap |
Qs International and Profunds Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qs International and Profunds Large
The main advantage of trading using opposite Qs International and Profunds Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qs International position performs unexpectedly, Profunds 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 Profunds Large will offset losses from the drop in Profunds Large's long position.| Qs International vs. Great West Loomis Sayles | Qs International vs. Omni Small Cap Value | Qs International vs. Queens Road Small | Qs International vs. Heartland Value Plus |
| Profunds Large vs. Aig Government Money | Profunds Large vs. Elfun Government Money | Profunds Large vs. Putnam Money Market | Profunds Large vs. Rbc Money Market |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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