Correlation Between Needham Small and Clipper Fund
Can any of the company-specific risk be diversified away by investing in both Needham Small and Clipper Fund 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 Small and Clipper Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Needham Small Cap and Clipper Fund Inc, you can compare the effects of market volatilities on Needham Small and Clipper Fund 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 Small with a short position of Clipper Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Needham Small and Clipper Fund.
Diversification Opportunities for Needham Small and Clipper Fund
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Needham and Clipper is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Needham Small Cap and Clipper Fund Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clipper Fund and Needham Small 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 Small Cap are associated (or correlated) with Clipper Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clipper Fund has no effect on the direction of Needham Small i.e., Needham Small and Clipper Fund go up and down completely randomly.
Pair Corralation between Needham Small and Clipper Fund
Assuming the 90 days horizon Needham Small Cap is expected to generate 2.59 times more return on investment than Clipper Fund. However, Needham Small is 2.59 times more volatile than Clipper Fund Inc. It trades about 0.07 of its potential returns per unit of risk. Clipper Fund Inc is currently generating about 0.13 per unit of risk. If you would invest 1,967 in Needham Small Cap on August 31, 2025 and sell it today you would earn a total of 172.00 from holding Needham Small Cap or generate 8.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Needham Small Cap vs. Clipper Fund Inc
Performance |
| Timeline |
| Needham Small Cap |
| Clipper Fund |
Needham Small and Clipper Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Needham Small and Clipper Fund
The main advantage of trading using opposite Needham Small and Clipper Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Needham Small position performs unexpectedly, Clipper Fund 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 Clipper Fund will offset losses from the drop in Clipper Fund's long position.| Needham Small vs. Needham Aggressive Growth | Needham Small vs. Needham Growth Fund | Needham Small vs. Needham Growth | Needham Small vs. Prudential Jennison International |
| Clipper Fund vs. Harding Loevner Emerging | Clipper Fund vs. Balanced Strategy Fund | Clipper Fund vs. Investec Emerging Markets | Clipper Fund vs. Martin Currie Emerging |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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