Correlation Between Needham Aggressive and Huber Capital
Can any of the company-specific risk be diversified away by investing in both Needham Aggressive and Huber Capital 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 Huber Capital 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 Huber Capital Small, you can compare the effects of market volatilities on Needham Aggressive and Huber Capital 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 Huber Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Needham Aggressive and Huber Capital.
Diversification Opportunities for Needham Aggressive and Huber Capital
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Needham and Huber is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Needham Aggressive Growth and Huber Capital Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huber Capital Small 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 Huber Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huber Capital Small has no effect on the direction of Needham Aggressive i.e., Needham Aggressive and Huber Capital go up and down completely randomly.
Pair Corralation between Needham Aggressive and Huber Capital
Assuming the 90 days horizon Needham Aggressive Growth is expected to generate 1.04 times more return on investment than Huber Capital. However, Needham Aggressive is 1.04 times more volatile than Huber Capital Small. It trades about 0.18 of its potential returns per unit of risk. Huber Capital Small is currently generating about 0.11 per unit of risk. If you would invest 5,027 in Needham Aggressive Growth on June 3, 2025 and sell it today you would earn a total of 726.00 from holding Needham Aggressive Growth or generate 14.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Needham Aggressive Growth vs. Huber Capital Small
Performance |
| Timeline |
| Needham Aggressive Growth |
| Huber Capital Small |
Needham Aggressive and Huber Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Needham Aggressive and Huber Capital
The main advantage of trading using opposite Needham Aggressive and Huber Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Needham Aggressive position performs unexpectedly, Huber Capital 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 Huber Capital will offset losses from the drop in Huber Capital'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 |
| Huber Capital vs. Heartland Value Plus | Huber Capital vs. Omni Small Cap Value | Huber Capital vs. Vanguard Small Cap Value | Huber Capital vs. Queens Road Small |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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