Correlation Between Us Government and Midas Fund

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Can any of the company-specific risk be diversified away by investing in both Us Government and Midas 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 Us Government and Midas Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Us Government Securities and Midas Fund Midas, you can compare the effects of market volatilities on Us Government and Midas 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 Us Government with a short position of Midas Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Us Government and Midas Fund.

Diversification Opportunities for Us Government and Midas Fund

0.23
  Correlation Coefficient

Modest diversification

The 3 months correlation between RGVAX and Midas is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Us Government Securities and Midas Fund Midas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Midas Fund Midas and Us Government 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 Us Government Securities are associated (or correlated) with Midas Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Midas Fund Midas has no effect on the direction of Us Government i.e., Us Government and Midas Fund go up and down completely randomly.

Pair Corralation between Us Government and Midas Fund

Assuming the 90 days horizon Us Government is expected to generate 27.83 times less return on investment than Midas Fund. But when comparing it to its historical volatility, Us Government Securities is 16.18 times less risky than Midas Fund. It trades about 0.05 of its potential returns per unit of risk. Midas Fund Midas is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  306.00  in Midas Fund Midas on October 5, 2025 and sell it today you would earn a total of  39.00  from holding Midas Fund Midas or generate 12.75% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Us Government Securities  vs.  Midas Fund Midas

 Performance 
       Timeline  
Us Government Securities 

Risk-Adjusted Performance

Soft

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Us Government Securities are ranked lower than 4 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Us Government is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Midas Fund Midas 

Risk-Adjusted Performance

Mild

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Midas Fund Midas are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Midas Fund showed solid returns over the last few months and may actually be approaching a breakup point.

Us Government and Midas Fund Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Us Government and Midas Fund

The main advantage of trading using opposite Us Government and Midas Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Us Government position performs unexpectedly, Midas 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 Midas Fund will offset losses from the drop in Midas Fund's long position.
The idea behind Us Government Securities and Midas Fund Midas pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.

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