Correlation Between Paradigm Select and Jackson Square
Can any of the company-specific risk be diversified away by investing in both Paradigm Select and Jackson Square 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 Paradigm Select and Jackson Square into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Paradigm Select Fund and Jackson Square Smid Cap, you can compare the effects of market volatilities on Paradigm Select and Jackson Square 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 Paradigm Select with a short position of Jackson Square. Check out your portfolio center. Please also check ongoing floating volatility patterns of Paradigm Select and Jackson Square.
Diversification Opportunities for Paradigm Select and Jackson Square
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Paradigm and Jackson is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Paradigm Select Fund and Jackson Square Smid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jackson Square Smid and Paradigm Select 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 Paradigm Select Fund are associated (or correlated) with Jackson Square. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jackson Square Smid has no effect on the direction of Paradigm Select i.e., Paradigm Select and Jackson Square go up and down completely randomly.
Pair Corralation between Paradigm Select and Jackson Square
Assuming the 90 days horizon Paradigm Select Fund is expected to generate 1.45 times more return on investment than Jackson Square. However, Paradigm Select is 1.45 times more volatile than Jackson Square Smid Cap. It trades about 0.15 of its potential returns per unit of risk. Jackson Square Smid Cap is currently generating about 0.12 per unit of risk. If you would invest 7,963 in Paradigm Select Fund on August 31, 2025 and sell it today you would earn a total of 1,202 from holding Paradigm Select Fund or generate 15.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Paradigm Select Fund vs. Jackson Square Smid Cap
Performance |
| Timeline |
| Paradigm Select |
| Jackson Square Smid |
Paradigm Select and Jackson Square Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Paradigm Select and Jackson Square
The main advantage of trading using opposite Paradigm Select and Jackson Square positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Paradigm Select position performs unexpectedly, Jackson Square 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 Jackson Square will offset losses from the drop in Jackson Square's long position.| Paradigm Select vs. John Hancock Financial | Paradigm Select vs. Financial Industries Fund | Paradigm Select vs. Mesirow Financial High | Paradigm Select vs. Fidelity Advisor Financial |
| Jackson Square vs. Vy Goldman Sachs | Jackson Square vs. Gold And Precious | Jackson Square vs. First Eagle Gold | Jackson Square vs. Gamco Global Gold |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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