Correlation Between Congress Mid and Polen Global
Can any of the company-specific risk be diversified away by investing in both Congress Mid and Polen Global 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 Congress Mid and Polen Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Congress Mid Cap and Polen Global Growth, you can compare the effects of market volatilities on Congress Mid and Polen Global 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 Congress Mid with a short position of Polen Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Congress Mid and Polen Global.
Diversification Opportunities for Congress Mid and Polen Global
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Congress and Polen is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Congress Mid Cap and Polen Global Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Polen Global Growth and Congress 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 Congress Mid Cap are associated (or correlated) with Polen Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Polen Global Growth has no effect on the direction of Congress Mid i.e., Congress Mid and Polen Global go up and down completely randomly.
Pair Corralation between Congress Mid and Polen Global
Assuming the 90 days horizon Congress Mid Cap is expected to under-perform the Polen Global. In addition to that, Congress Mid is 1.4 times more volatile than Polen Global Growth. It trades about -0.42 of its total potential returns per unit of risk. Polen Global Growth is currently generating about -0.12 per unit of volatility. If you would invest 2,768 in Polen Global Growth on November 28, 2024 and sell it today you would lose (49.00) from holding Polen Global Growth or give up 1.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Congress Mid Cap vs. Polen Global Growth
Performance |
| Timeline |
| Congress Mid Cap |
| Polen Global Growth |
Congress Mid and Polen Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Congress Mid and Polen Global
The main advantage of trading using opposite Congress Mid and Polen Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Congress Mid position performs unexpectedly, Polen Global 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 Polen Global will offset losses from the drop in Polen Global's long position.| Congress Mid vs. Polen Growth Fund | Congress Mid vs. Segall Bryant Hamill | Congress Mid vs. Diamond Hill All | Congress Mid vs. Wells Fargo Index |
| Polen Global vs. Putnam Multi Cap Growth | Polen Global vs. Polen Growth Fund | Polen Global vs. Putnam Global Equity | Polen Global vs. Putnam International Equity |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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