Correlation Between Small-cap Growth and Intech Managed
Can any of the company-specific risk be diversified away by investing in both Small-cap Growth and Intech Managed 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 Small-cap Growth and Intech Managed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Small Cap Growth Profund and Intech Managed Volatility, you can compare the effects of market volatilities on Small-cap Growth and Intech Managed 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 Small-cap Growth with a short position of Intech Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Small-cap Growth and Intech Managed.
Diversification Opportunities for Small-cap Growth and Intech Managed
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Small-cap and Intech is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Small Cap Growth Profund and Intech Managed Volatility in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intech Managed Volatility and Small-cap Growth 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 Small Cap Growth Profund are associated (or correlated) with Intech Managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intech Managed Volatility has no effect on the direction of Small-cap Growth i.e., Small-cap Growth and Intech Managed go up and down completely randomly.
Pair Corralation between Small-cap Growth and Intech Managed
Assuming the 90 days horizon Small Cap Growth Profund is expected to generate 1.31 times more return on investment than Intech Managed. However, Small-cap Growth is 1.31 times more volatile than Intech Managed Volatility. It trades about 0.22 of its potential returns per unit of risk. Intech Managed Volatility is currently generating about 0.24 per unit of risk. If you would invest 9,476 in Small Cap Growth Profund on April 15, 2025 and sell it today you would earn a total of 1,509 from holding Small Cap Growth Profund or generate 15.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Small Cap Growth Profund vs. Intech Managed Volatility
Performance |
| Timeline |
| Small Cap Growth |
| Intech Managed Volatility |
Small-cap Growth and Intech Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Small-cap Growth and Intech Managed
The main advantage of trading using opposite Small-cap Growth and Intech Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Small-cap Growth position performs unexpectedly, Intech Managed 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 Intech Managed will offset losses from the drop in Intech Managed's long position.| Small-cap Growth vs. Small Cap Value Profund | Small-cap Growth vs. Mid Cap Growth Profund | Small-cap Growth vs. Mid Cap Value Profund | Small-cap Growth vs. Small Cap Profund Small Cap |
| Intech Managed vs. Columbia Select Large | Intech Managed vs. Morningstar Unconstrained Allocation | Intech Managed vs. High Yield Municipal Fund | Intech Managed vs. Thrivent High Yield |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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