Correlation Between Mid Cap and Aston Montag
Can any of the company-specific risk be diversified away by investing in both Mid Cap and Aston Montag 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 Mid Cap and Aston Montag into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mid Cap Growth and Aston Montag Caldwell, you can compare the effects of market volatilities on Mid Cap and Aston Montag 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 Mid Cap with a short position of Aston Montag. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mid Cap and Aston Montag.
Diversification Opportunities for Mid Cap and Aston Montag
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Mid and Aston is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Mid Cap Growth and Aston Montag Caldwell in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aston Montag Caldwell and Mid Cap 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 Mid Cap Growth are associated (or correlated) with Aston Montag. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aston Montag Caldwell has no effect on the direction of Mid Cap i.e., Mid Cap and Aston Montag go up and down completely randomly.
Pair Corralation between Mid Cap and Aston Montag
Assuming the 90 days horizon Mid Cap is expected to generate 1.39 times less return on investment than Aston Montag. In addition to that, Mid Cap is 1.18 times more volatile than Aston Montag Caldwell. It trades about 0.12 of its total potential returns per unit of risk. Aston Montag Caldwell is currently generating about 0.19 per unit of volatility. If you would invest 1,269 in Aston Montag Caldwell on May 27, 2025 and sell it today you would earn a total of 117.00 from holding Aston Montag Caldwell or generate 9.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mid Cap Growth vs. Aston Montag Caldwell
Performance |
| Timeline |
| Mid Cap Growth |
| Aston Montag Caldwell |
Mid Cap and Aston Montag Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mid Cap and Aston Montag
The main advantage of trading using opposite Mid Cap and Aston Montag positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mid Cap position performs unexpectedly, Aston Montag 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 Aston Montag will offset losses from the drop in Aston Montag's long position.The idea behind Mid Cap Growth and Aston Montag Caldwell 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.| Aston Montag vs. Credit Suisse Modity | Aston Montag vs. Selected American Shares | Aston Montag vs. Causeway International Value | Aston Montag vs. Marsico Focus Fund |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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