Correlation Between Sp 500 and Mid-cap 15x
Can any of the company-specific risk be diversified away by investing in both Sp 500 and Mid-cap 15x 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 Sp 500 and Mid-cap 15x into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sp 500 2x and Mid Cap 15x Strategy, you can compare the effects of market volatilities on Sp 500 and Mid-cap 15x 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 Sp 500 with a short position of Mid-cap 15x. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sp 500 and Mid-cap 15x.
Diversification Opportunities for Sp 500 and Mid-cap 15x
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between RYCTX and Mid-cap is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Sp 500 2x and Mid Cap 15x Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mid Cap 15x and Sp 500 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 Sp 500 2x are associated (or correlated) with Mid-cap 15x. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mid Cap 15x has no effect on the direction of Sp 500 i.e., Sp 500 and Mid-cap 15x go up and down completely randomly.
Pair Corralation between Sp 500 and Mid-cap 15x
Assuming the 90 days horizon Sp 500 2x is expected to generate 0.9 times more return on investment than Mid-cap 15x. However, Sp 500 2x is 1.11 times less risky than Mid-cap 15x. It trades about 0.18 of its potential returns per unit of risk. Mid Cap 15x Strategy is currently generating about 0.1 per unit of risk. If you would invest 25,758 in Sp 500 2x on June 6, 2025 and sell it today you would earn a total of 3,524 from holding Sp 500 2x or generate 13.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.39% |
| Values | Daily Returns |
Sp 500 2x vs. Mid Cap 15x Strategy
Performance |
| Timeline |
| Sp 500 2x |
| Mid Cap 15x |
Sp 500 and Mid-cap 15x Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sp 500 and Mid-cap 15x
The main advantage of trading using opposite Sp 500 and Mid-cap 15x positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sp 500 position performs unexpectedly, Mid-cap 15x 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 Mid-cap 15x will offset losses from the drop in Mid-cap 15x's long position.| Sp 500 vs. Old Westbury Large | Sp 500 vs. Qs Global Equity | Sp 500 vs. T Rowe Price | Sp 500 vs. Touchstone International Equity |
| Mid-cap 15x vs. First Eagle Gold | Mid-cap 15x vs. World Precious Minerals | Mid-cap 15x vs. The Gold Bullion | Mid-cap 15x vs. Great West Goldman Sachs |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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