Correlation Between Needham Aggressive and Emerald Growth
Can any of the company-specific risk be diversified away by investing in both Needham Aggressive and Emerald Growth 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 Emerald Growth 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 Emerald Growth Fund, you can compare the effects of market volatilities on Needham Aggressive and Emerald Growth 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 Emerald Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Needham Aggressive and Emerald Growth.
Diversification Opportunities for Needham Aggressive and Emerald Growth
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Needham and Emerald is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Needham Aggressive Growth and Emerald Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emerald Growth 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 Emerald Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emerald Growth has no effect on the direction of Needham Aggressive i.e., Needham Aggressive and Emerald Growth go up and down completely randomly.
Pair Corralation between Needham Aggressive and Emerald Growth
Assuming the 90 days horizon Needham Aggressive Growth is expected to under-perform the Emerald Growth. In addition to that, Needham Aggressive is 1.0 times more volatile than Emerald Growth Fund. It trades about -0.02 of its total potential returns per unit of risk. Emerald Growth Fund is currently generating about 0.06 per unit of volatility. If you would invest 1,567 in Emerald Growth Fund on August 27, 2025 and sell it today you would earn a total of 94.00 from holding Emerald Growth Fund or generate 6.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Needham Aggressive Growth vs. Emerald Growth Fund
Performance |
| Timeline |
| Needham Aggressive Growth |
| Emerald Growth |
Needham Aggressive and Emerald Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Needham Aggressive and Emerald Growth
The main advantage of trading using opposite Needham Aggressive and Emerald Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Needham Aggressive position performs unexpectedly, Emerald Growth 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 Emerald Growth will offset losses from the drop in Emerald Growth's long position.| Needham Aggressive vs. Mfs Technology Fund | Needham Aggressive vs. Science Technology Fund | Needham Aggressive vs. Dreyfus Technology Growth | Needham Aggressive vs. Fidelity Advisor Technology |
| Emerald Growth vs. Arrow Managed Futures | Emerald Growth vs. Vanguard High Yield Tax Exempt | Emerald Growth vs. Federated Municipal High | Emerald Growth vs. Dws Emerging Markets |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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