Correlation Between William Blair and Profunds Ultrashort

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Can any of the company-specific risk be diversified away by investing in both William Blair and Profunds Ultrashort 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 William Blair and Profunds Ultrashort into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between William Blair Small Mid and Profunds Ultrashort Nasdaq 100, you can compare the effects of market volatilities on William Blair and Profunds Ultrashort 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 William Blair with a short position of Profunds Ultrashort. Check out your portfolio center. Please also check ongoing floating volatility patterns of William Blair and Profunds Ultrashort.

Diversification Opportunities for William Blair and Profunds Ultrashort

-0.45
  Correlation Coefficient

Very good diversification

The 3 months correlation between WILLIAM and Profunds is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding William Blair Small Mid and Profunds Ultrashort Nasdaq 100 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Profunds Ultrashort and William Blair 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 William Blair Small Mid are associated (or correlated) with Profunds Ultrashort. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Profunds Ultrashort has no effect on the direction of William Blair i.e., William Blair and Profunds Ultrashort go up and down completely randomly.

Pair Corralation between William Blair and Profunds Ultrashort

Assuming the 90 days horizon William Blair Small Mid is expected to generate 0.51 times more return on investment than Profunds Ultrashort. However, William Blair Small Mid is 1.95 times less risky than Profunds Ultrashort. It trades about 0.05 of its potential returns per unit of risk. Profunds Ultrashort Nasdaq 100 is currently generating about -0.11 per unit of risk. If you would invest  2,495  in William Blair Small Mid on September 5, 2025 and sell it today you would earn a total of  86.00  from holding William Blair Small Mid or generate 3.45% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy98.44%
ValuesDaily Returns

William Blair Small Mid  vs.  Profunds Ultrashort Nasdaq 100

 Performance 
       Timeline  
William Blair Small 

Risk-Adjusted Performance

Soft

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in William Blair Small Mid are ranked lower than 4 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, William Blair is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Profunds Ultrashort 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Profunds Ultrashort Nasdaq 100 has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's basic indicators remain fairly strong which may send shares a bit higher in January 2026. The current disturbance may also be a sign of long term up-swing for the fund investors.

William Blair and Profunds Ultrashort Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with William Blair and Profunds Ultrashort

The main advantage of trading using opposite William Blair and Profunds Ultrashort positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if William Blair position performs unexpectedly, Profunds Ultrashort 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 Profunds Ultrashort will offset losses from the drop in Profunds Ultrashort's long position.
The idea behind William Blair Small Mid and Profunds Ultrashort Nasdaq 100 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.
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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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.

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