Correlation Between Small-cap Growth and Intech Us
Can any of the company-specific risk be diversified away by investing in both Small-cap Growth and Intech Us 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 Us 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 Us 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 Us. Check out your portfolio center. Please also check ongoing floating volatility patterns of Small-cap Growth and Intech Us.
Diversification Opportunities for Small-cap Growth and Intech Us
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 Us. 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 Us go up and down completely randomly.
Pair Corralation between Small-cap Growth and Intech Us
Assuming the 90 days horizon Small Cap Growth Profund is expected to generate 1.46 times more return on investment than Intech Us. However, Small-cap Growth is 1.46 times more volatile than Intech Managed Volatility. It trades about 0.27 of its potential returns per unit of risk. Intech Managed Volatility is currently generating about 0.37 per unit of risk. If you would invest 9,220 in Small Cap Growth Profund on April 19, 2025 and sell it today you would earn a total of 1,814 from holding Small Cap Growth Profund or generate 19.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.39% |
| Values | Daily Returns |
Small Cap Growth Profund vs. Intech Managed Volatility
Performance |
| Timeline |
| Small Cap Growth |
| Intech Managed Volatility |
Small-cap Growth and Intech Us Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Small-cap Growth and Intech Us
The main advantage of trading using opposite Small-cap Growth and Intech Us positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Small-cap Growth position performs unexpectedly, Intech Us 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 Us will offset losses from the drop in Intech Us' 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 Us vs. Janus Forty Fund | Intech Us vs. Janus High Yield Fund | Intech Us vs. Janus Research Fund | Intech Us vs. Intech Managed Volatility |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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