Correlation Between Needham Aggressive and Great-west Loomis
Can any of the company-specific risk be diversified away by investing in both Needham Aggressive and Great-west Loomis 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 Great-west Loomis 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 Great West Loomis Sayles, you can compare the effects of market volatilities on Needham Aggressive and Great-west Loomis 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 Great-west Loomis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Needham Aggressive and Great-west Loomis.
Diversification Opportunities for Needham Aggressive and Great-west Loomis
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Needham and Great-west is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Needham Aggressive Growth and Great West Loomis Sayles in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great West Loomis 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 Great-west Loomis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Great West Loomis has no effect on the direction of Needham Aggressive i.e., Needham Aggressive and Great-west Loomis go up and down completely randomly.
Pair Corralation between Needham Aggressive and Great-west Loomis
Assuming the 90 days horizon Needham Aggressive Growth is expected to generate 1.22 times more return on investment than Great-west Loomis. However, Needham Aggressive is 1.22 times more volatile than Great West Loomis Sayles. It trades about 0.05 of its potential returns per unit of risk. Great West Loomis Sayles is currently generating about 0.03 per unit of risk. If you would invest 3,887 in Needham Aggressive Growth on March 28, 2025 and sell it today you would earn a total of 1,437 from holding Needham Aggressive Growth or generate 36.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Needham Aggressive Growth vs. Great West Loomis Sayles
Performance |
| Timeline |
| Needham Aggressive Growth |
| Great West Loomis |
Needham Aggressive and Great-west Loomis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Needham Aggressive and Great-west Loomis
The main advantage of trading using opposite Needham Aggressive and Great-west Loomis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Needham Aggressive position performs unexpectedly, Great-west Loomis 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 Great-west Loomis will offset losses from the drop in Great-west Loomis' 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 |
| Great-west Loomis vs. Great West Securefoundation Balanced | Great-west Loomis vs. Great West Lifetime 2020 | Great-west Loomis vs. Great West Lifetime 2020 | Great-west Loomis vs. Great West Lifetime 2020 |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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