Correlation Between Needham Aggressive and Commodities Strategy
Can any of the company-specific risk be diversified away by investing in both Needham Aggressive and Commodities Strategy 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 Commodities Strategy 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 Commodities Strategy Fund, you can compare the effects of market volatilities on Needham Aggressive and Commodities Strategy 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 Commodities Strategy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Needham Aggressive and Commodities Strategy.
Diversification Opportunities for Needham Aggressive and Commodities Strategy
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Needham and Commodities is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Needham Aggressive Growth and Commodities Strategy Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Commodities Strategy 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 Commodities Strategy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Commodities Strategy has no effect on the direction of Needham Aggressive i.e., Needham Aggressive and Commodities Strategy go up and down completely randomly.
Pair Corralation between Needham Aggressive and Commodities Strategy
Assuming the 90 days horizon Needham Aggressive Growth is expected to generate 0.74 times more return on investment than Commodities Strategy. However, Needham Aggressive Growth is 1.36 times less risky than Commodities Strategy. It trades about 0.34 of its potential returns per unit of risk. Commodities Strategy Fund is currently generating about -0.16 per unit of risk. If you would invest 5,206 in Needham Aggressive Growth on April 21, 2025 and sell it today you would earn a total of 338.00 from holding Needham Aggressive Growth or generate 6.49% 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. Commodities Strategy Fund
Performance |
| Timeline |
| Needham Aggressive Growth |
| Commodities Strategy |
Needham Aggressive and Commodities Strategy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Needham Aggressive and Commodities Strategy
The main advantage of trading using opposite Needham Aggressive and Commodities Strategy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Needham Aggressive position performs unexpectedly, Commodities Strategy 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 Commodities Strategy will offset losses from the drop in Commodities Strategy'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 |
| Commodities Strategy vs. L Abbett Fundamental | Commodities Strategy vs. Jpmorgan Smartretirement 2030 | Commodities Strategy vs. Shelton Funds | Commodities Strategy vs. Auer Growth 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |