Correlation Between Mairs Power and First Trust/confluence
Can any of the company-specific risk be diversified away by investing in both Mairs Power and First Trust/confluence 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 Mairs Power and First Trust/confluence into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mairs Power Growth and First Trustconfluence Small, you can compare the effects of market volatilities on Mairs Power and First Trust/confluence 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 Mairs Power with a short position of First Trust/confluence. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mairs Power and First Trust/confluence.
Diversification Opportunities for Mairs Power and First Trust/confluence
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mairs and First is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Mairs Power Growth and First Trustconfluence Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Trust/confluence and Mairs Power 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 Mairs Power Growth are associated (or correlated) with First Trust/confluence. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Trust/confluence has no effect on the direction of Mairs Power i.e., Mairs Power and First Trust/confluence go up and down completely randomly.
Pair Corralation between Mairs Power and First Trust/confluence
Assuming the 90 days horizon Mairs Power Growth is expected to generate 0.52 times more return on investment than First Trust/confluence. However, Mairs Power Growth is 1.92 times less risky than First Trust/confluence. It trades about 0.19 of its potential returns per unit of risk. First Trustconfluence Small is currently generating about 0.05 per unit of risk. If you would invest 16,708 in Mairs Power Growth on June 8, 2025 and sell it today you would earn a total of 1,391 from holding Mairs Power Growth or generate 8.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.41% |
| Values | Daily Returns |
Mairs Power Growth vs. First Trustconfluence Small
Performance |
| Timeline |
| Mairs Power Growth |
| First Trust/confluence |
Mairs Power and First Trust/confluence Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mairs Power and First Trust/confluence
The main advantage of trading using opposite Mairs Power and First Trust/confluence positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mairs Power position performs unexpectedly, First Trust/confluence 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 First Trust/confluence will offset losses from the drop in First Trust/confluence's long position.| Mairs Power vs. Clipper Fund Inc | Mairs Power vs. Mairs Power Balanced | Mairs Power vs. Muhlenkamp Fund Institutional | Mairs Power vs. Meridian Trarian 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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