Correlation Between Mairs Power and Muhlenkamp Fund
Can any of the company-specific risk be diversified away by investing in both Mairs Power and Muhlenkamp Fund 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 Mairs Power and Muhlenkamp Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mairs Power Growth and Muhlenkamp Fund Institutional, you can compare the effects of market volatilities on Mairs Power and Muhlenkamp Fund 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 Mairs Power with a short position of Muhlenkamp Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mairs Power and Muhlenkamp Fund.
Diversification Opportunities for Mairs Power and Muhlenkamp Fund
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between MAIRS and Muhlenkamp is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Mairs Power Growth and Muhlenkamp Fund Institutional in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Muhlenkamp Fund Inst and Mairs Power 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 Mairs Power Growth are associated (or correlated) with Muhlenkamp Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Muhlenkamp Fund Inst has no effect on the direction of Mairs Power i.e., Mairs Power and Muhlenkamp Fund go up and down completely randomly.
Pair Corralation between Mairs Power and Muhlenkamp Fund
Assuming the 90 days horizon Mairs Power Growth is expected to generate 0.9 times more return on investment than Muhlenkamp Fund. However, Mairs Power Growth is 1.12 times less risky than Muhlenkamp Fund. It trades about 0.07 of its potential returns per unit of risk. Muhlenkamp Fund Institutional is currently generating about 0.04 per unit of risk. If you would invest 15,064 in Mairs Power Growth on November 3, 2024 and sell it today you would earn a total of 2,293 from holding Mairs Power Growth or generate 15.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mairs Power Growth vs. Muhlenkamp Fund Institutional
Performance |
| Timeline |
| Mairs Power Growth |
| Muhlenkamp Fund Inst |
Mairs Power and Muhlenkamp Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mairs Power and Muhlenkamp Fund
The main advantage of trading using opposite Mairs Power and Muhlenkamp Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mairs Power position performs unexpectedly, Muhlenkamp Fund 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 Muhlenkamp Fund will offset losses from the drop in Muhlenkamp Fund's long position.| Mairs Power vs. Meridian Trarian Fund | Mairs Power vs. Mairs Power Balanced | Mairs Power vs. Clipper Fund Inc | Mairs Power vs. Meridian Growth Fund |
| Muhlenkamp Fund vs. Third Avenue Value | Muhlenkamp Fund vs. Meridian Growth Fund | Muhlenkamp Fund vs. Heartland Value Fund | Muhlenkamp Fund vs. Mairs Power Growth |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |