Correlation Between Qs Us and Profunds Large
Can any of the company-specific risk be diversified away by investing in both Qs Us 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 Us 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 Large Cap and Profunds Large Cap Growth, you can compare the effects of market volatilities on Qs Us 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 Us with a short position of Profunds Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qs Us and Profunds Large.
Diversification Opportunities for Qs Us and Profunds Large
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between LMUSX and Profunds is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Qs Large Cap 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 Us 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 Large Cap 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 Us i.e., Qs Us and Profunds Large go up and down completely randomly.
Pair Corralation between Qs Us and Profunds Large
Assuming the 90 days horizon Qs Us is expected to generate 1.15 times less return on investment than Profunds Large. But when comparing it to its historical volatility, Qs Large Cap is 1.22 times less risky than Profunds Large. It trades about 0.24 of its potential returns per unit of risk. Profunds Large Cap Growth is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 3,545 in Profunds Large Cap Growth on May 28, 2025 and sell it today you would earn a total of 378.00 from holding Profunds Large Cap Growth or generate 10.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qs Large Cap vs. Profunds Large Cap Growth
Performance |
| Timeline |
| Qs Large Cap |
| Profunds Large Cap |
Qs Us and Profunds Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qs Us and Profunds Large
The main advantage of trading using opposite Qs Us and Profunds Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qs Us 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 Us vs. Clearbridge Aggressive Growth | Qs Us vs. Clearbridge Small Cap | Qs Us vs. Qs International Equity | Qs Us vs. Clearbridge Appreciation Fund |
| Profunds Large vs. The Gabelli Healthcare | Profunds Large vs. Lord Abbett Health | Profunds Large vs. Deutsche Health And | Profunds Large vs. Alger Health Sciences |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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