Correlation Between Mid Cap and Acadian Emerging
Can any of the company-specific risk be diversified away by investing in both Mid Cap and Acadian Emerging 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 and Acadian Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mid Cap Growth and Acadian Emerging Markets, you can compare the effects of market volatilities on Mid Cap and Acadian Emerging 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 with a short position of Acadian Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mid Cap and Acadian Emerging.
Diversification Opportunities for Mid Cap and Acadian Emerging
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Mid and Acadian is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Mid Cap Growth and Acadian Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acadian Emerging Markets and Mid Cap 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 are associated (or correlated) with Acadian Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acadian Emerging Markets has no effect on the direction of Mid Cap i.e., Mid Cap and Acadian Emerging go up and down completely randomly.
Pair Corralation between Mid Cap and Acadian Emerging
Assuming the 90 days horizon Mid Cap Growth is expected to generate 2.02 times more return on investment than Acadian Emerging. However, Mid Cap is 2.02 times more volatile than Acadian Emerging Markets. It trades about 0.08 of its potential returns per unit of risk. Acadian Emerging Markets is currently generating about 0.1 per unit of risk. If you would invest 1,380 in Mid Cap Growth on October 9, 2025 and sell it today you would earn a total of 1,208 from holding Mid Cap Growth or generate 87.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mid Cap Growth vs. Acadian Emerging Markets
Performance |
| Timeline |
| Mid Cap Growth |
| Acadian Emerging Markets |
Mid Cap and Acadian Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mid Cap and Acadian Emerging
The main advantage of trading using opposite Mid Cap and Acadian Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mid Cap position performs unexpectedly, Acadian Emerging 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 Acadian Emerging will offset losses from the drop in Acadian Emerging's long position.| Mid Cap vs. Mid Cap Growth | Mid Cap vs. Acadian Emerging Markets | Mid Cap vs. One Choice 2030 | Mid Cap vs. Large Cap Growth |
| Acadian Emerging vs. Acadian Emerging Markets | Acadian Emerging vs. Eventide Global Dividend | Acadian Emerging vs. Emerging Markets Sustainability | Acadian Emerging vs. One Choice 2030 |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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