Correlation Between Mid-cap Growth and Growth Fund
Can any of the company-specific risk be diversified away by investing in both Mid-cap Growth and Growth 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 Mid-cap Growth and Growth Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mid Cap Growth Profund and Growth Fund Of, you can compare the effects of market volatilities on Mid-cap Growth and Growth 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 Mid-cap Growth with a short position of Growth Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mid-cap Growth and Growth Fund.
Diversification Opportunities for Mid-cap Growth and Growth Fund
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Mid-cap and Growth is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Mid Cap Growth Profund and Growth Fund Of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Growth Fund and Mid-cap Growth 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 Mid Cap Growth Profund are associated (or correlated) with Growth Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Growth Fund has no effect on the direction of Mid-cap Growth i.e., Mid-cap Growth and Growth Fund go up and down completely randomly.
Pair Corralation between Mid-cap Growth and Growth Fund
Assuming the 90 days horizon Mid-cap Growth is expected to generate 1.37 times less return on investment than Growth Fund. In addition to that, Mid-cap Growth is 1.06 times more volatile than Growth Fund Of. It trades about 0.29 of its total potential returns per unit of risk. Growth Fund Of is currently generating about 0.42 per unit of volatility. If you would invest 6,375 in Growth Fund Of on April 19, 2025 and sell it today you would earn a total of 1,839 from holding Growth Fund Of or generate 28.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.39% |
| Values | Daily Returns |
Mid Cap Growth Profund vs. Growth Fund Of
Performance |
| Timeline |
| Mid Cap Growth |
| Growth Fund |
Mid-cap Growth and Growth Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mid-cap Growth and Growth Fund
The main advantage of trading using opposite Mid-cap Growth and Growth Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mid-cap Growth position performs unexpectedly, Growth 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 Growth Fund will offset losses from the drop in Growth Fund's long position.| Mid-cap Growth vs. Small Cap Growth Profund | Mid-cap Growth vs. Mid Cap Value Profund | Mid-cap Growth vs. Small Cap Value Profund | Mid-cap Growth vs. Mid Cap Profund Mid Cap |
| Growth Fund vs. Deutsche Gold Precious | Growth Fund vs. Goldman Sachs Clean | Growth Fund vs. Europac Gold Fund | Growth Fund vs. Global Gold 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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