Correlation Between Mid-cap Growth and Valic Company
Can any of the company-specific risk be diversified away by investing in both Mid-cap Growth and Valic Company 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 Valic Company 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 Valic Company I, you can compare the effects of market volatilities on Mid-cap Growth and Valic Company 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 Valic Company. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mid-cap Growth and Valic Company.
Diversification Opportunities for Mid-cap Growth and Valic Company
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Mid-cap and Valic is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Mid Cap Growth Profund and Valic Company I in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Valic Company I 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 Valic Company. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Valic Company I has no effect on the direction of Mid-cap Growth i.e., Mid-cap Growth and Valic Company go up and down completely randomly.
Pair Corralation between Mid-cap Growth and Valic Company
Assuming the 90 days horizon Mid Cap Growth Profund is expected to under-perform the Valic Company. But the mutual fund apears to be less risky and, when comparing its historical volatility, Mid Cap Growth Profund is 1.4 times less risky than Valic Company. The mutual fund trades about -0.01 of its potential returns per unit of risk. The Valic Company I is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 1,192 in Valic Company I on May 29, 2025 and sell it today you would earn a total of 53.00 from holding Valic Company I or generate 4.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mid Cap Growth Profund vs. Valic Company I
Performance |
| Timeline |
| Mid Cap Growth |
| Valic Company I |
Mid-cap Growth and Valic Company Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mid-cap Growth and Valic Company
The main advantage of trading using opposite Mid-cap Growth and Valic Company positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mid-cap Growth position performs unexpectedly, Valic Company 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 Valic Company will offset losses from the drop in Valic Company'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 |
| Valic Company vs. Omni Small Cap Value | Valic Company vs. Eagle Small Cap | Valic Company vs. Federated Mdt Small | Valic Company vs. Mutual Of America |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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