Correlation Between Needham Aggressive and World Ex
Can any of the company-specific risk be diversified away by investing in both Needham Aggressive and World Ex 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 Needham Aggressive and World Ex into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Needham Aggressive Growth and World Ex Val, you can compare the effects of market volatilities on Needham Aggressive and World Ex 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 Needham Aggressive with a short position of World Ex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Needham Aggressive and World Ex.
Diversification Opportunities for Needham Aggressive and World Ex
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Needham and World is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Needham Aggressive Growth and World Ex Val in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on World Ex Val and Needham Aggressive 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 Needham Aggressive Growth are associated (or correlated) with World Ex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of World Ex Val has no effect on the direction of Needham Aggressive i.e., Needham Aggressive and World Ex go up and down completely randomly.
Pair Corralation between Needham Aggressive and World Ex
Assuming the 90 days horizon Needham Aggressive Growth is expected to generate 1.83 times more return on investment than World Ex. However, Needham Aggressive is 1.83 times more volatile than World Ex Val. It trades about 0.18 of its potential returns per unit of risk. World Ex Val is currently generating about 0.21 per unit of risk. If you would invest 5,068 in Needham Aggressive Growth on June 4, 2025 and sell it today you would earn a total of 685.00 from holding Needham Aggressive Growth or generate 13.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Needham Aggressive Growth vs. World Ex Val
Performance |
| Timeline |
| Needham Aggressive Growth |
| World Ex Val |
Needham Aggressive and World Ex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Needham Aggressive and World Ex
The main advantage of trading using opposite Needham Aggressive and World Ex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Needham Aggressive position performs unexpectedly, World Ex 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 World Ex will offset losses from the drop in World Ex's long position.| Needham Aggressive vs. Needham Aggressive Growth | Needham Aggressive vs. Needham Small Cap | Needham Aggressive vs. Ultramid Cap Profund Ultramid Cap | Needham Aggressive vs. Fidelity Advisor Semiconductors |
| World Ex vs. Dodge Cox International | World Ex vs. Oakmark International Fund | World Ex vs. Dodge International Stock | World Ex vs. Oakmark International 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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