Correlation Between Tocqueville Fund and Needham Growth
Can any of the company-specific risk be diversified away by investing in both Tocqueville Fund and Needham Growth 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 Tocqueville Fund and Needham Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Tocqueville Fund and Needham Growth, you can compare the effects of market volatilities on Tocqueville Fund and Needham Growth 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 Tocqueville Fund with a short position of Needham Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tocqueville Fund and Needham Growth.
Diversification Opportunities for Tocqueville Fund and Needham Growth
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Tocqueville and Needham is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding The Tocqueville Fund and Needham Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Needham Growth and Tocqueville Fund 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 The Tocqueville Fund are associated (or correlated) with Needham Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Needham Growth has no effect on the direction of Tocqueville Fund i.e., Tocqueville Fund and Needham Growth go up and down completely randomly.
Pair Corralation between Tocqueville Fund and Needham Growth
Assuming the 90 days horizon Tocqueville Fund is expected to generate 1.14 times less return on investment than Needham Growth. But when comparing it to its historical volatility, The Tocqueville Fund is 1.98 times less risky than Needham Growth. It trades about 0.36 of its potential returns per unit of risk. Needham Growth is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 5,293 in Needham Growth on April 26, 2025 and sell it today you would earn a total of 1,034 from holding Needham Growth or generate 19.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Tocqueville Fund vs. Needham Growth
Performance |
| Timeline |
| Tocqueville Fund |
| Needham Growth |
Tocqueville Fund and Needham Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tocqueville Fund and Needham Growth
The main advantage of trading using opposite Tocqueville Fund and Needham Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tocqueville Fund position performs unexpectedly, Needham Growth 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 Needham Growth will offset losses from the drop in Needham Growth's long position.| Tocqueville Fund vs. Equity Series Class | Tocqueville Fund vs. Large Cap Fund | Tocqueville Fund vs. The Tocqueville International | Tocqueville Fund vs. Heartland Value Plus |
| Needham Growth vs. Live Oak Health | Needham Growth vs. Deutsche Health And | Needham Growth vs. Lord Abbett Health | Needham Growth vs. Tekla Healthcare Investors |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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