Correlation Between Champlain Mid and Northern Funds
Can any of the company-specific risk be diversified away by investing in both Champlain Mid and Northern Funds 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 Champlain Mid and Northern Funds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Champlain Mid Cap and Northern Funds , you can compare the effects of market volatilities on Champlain Mid and Northern Funds 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 Champlain Mid with a short position of Northern Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Champlain Mid and Northern Funds.
Diversification Opportunities for Champlain Mid and Northern Funds
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Champlain and Northern is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Champlain Mid Cap and Northern Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northern Funds and Champlain Mid 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 Champlain Mid Cap are associated (or correlated) with Northern Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Northern Funds has no effect on the direction of Champlain Mid i.e., Champlain Mid and Northern Funds go up and down completely randomly.
Pair Corralation between Champlain Mid and Northern Funds
Assuming the 90 days horizon Champlain Mid Cap is expected to generate 6.6 times more return on investment than Northern Funds. However, Champlain Mid is 6.6 times more volatile than Northern Funds . It trades about 0.19 of its potential returns per unit of risk. Northern Funds is currently generating about 0.13 per unit of risk. If you would invest 2,362 in Champlain Mid Cap on September 12, 2024 and sell it today you would earn a total of 243.00 from holding Champlain Mid Cap or generate 10.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
Champlain Mid Cap vs. Northern Funds
Performance |
| Timeline |
| Champlain Mid Cap |
| Northern Funds |
Champlain Mid and Northern Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Champlain Mid and Northern Funds
The main advantage of trading using opposite Champlain Mid and Northern Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Champlain Mid position performs unexpectedly, Northern Funds 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 Northern Funds will offset losses from the drop in Northern Funds' long position.| Champlain Mid vs. Champlain Small Pany | Champlain Mid vs. T Rowe Price | Champlain Mid vs. American Mutual Fund | Champlain Mid vs. Loomis Sayles Growth |
| Northern Funds vs. Goldman Sachs Clean | Northern Funds vs. Fidelity Advisor Gold | Northern Funds vs. Franklin Gold Precious | Northern Funds vs. Great West Goldman Sachs |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |