Correlation Between Needham Aggressive and Eagle Small
Can any of the company-specific risk be diversified away by investing in both Needham Aggressive and Eagle Small 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 Needham Aggressive and Eagle Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Needham Aggressive Growth and Eagle Small Cap, you can compare the effects of market volatilities on Needham Aggressive and Eagle Small 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 Needham Aggressive with a short position of Eagle Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Needham Aggressive and Eagle Small.
Diversification Opportunities for Needham Aggressive and Eagle Small
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Needham and Eagle is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Needham Aggressive Growth and Eagle Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Small Cap and Needham Aggressive 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 Needham Aggressive Growth are associated (or correlated) with Eagle Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Small Cap has no effect on the direction of Needham Aggressive i.e., Needham Aggressive and Eagle Small go up and down completely randomly.
Pair Corralation between Needham Aggressive and Eagle Small
Assuming the 90 days horizon Needham Aggressive Growth is expected to generate 1.37 times more return on investment than Eagle Small. However, Needham Aggressive is 1.37 times more volatile than Eagle Small Cap. It trades about -0.13 of its potential returns per unit of risk. Eagle Small Cap is currently generating about -0.24 per unit of risk. If you would invest 4,674 in Needham Aggressive Growth on December 3, 2024 and sell it today you would lose (203.00) from holding Needham Aggressive Growth or give up 4.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Needham Aggressive Growth vs. Eagle Small Cap
Performance |
| Timeline |
| Needham Aggressive Growth |
| Eagle Small Cap |
Needham Aggressive and Eagle Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Needham Aggressive and Eagle Small
The main advantage of trading using opposite Needham Aggressive and Eagle Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Needham Aggressive position performs unexpectedly, Eagle Small 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 Eagle Small will offset losses from the drop in Eagle Small's long position.| Needham Aggressive vs. Needham Small Cap | Needham Aggressive vs. Needham Growth Fund | Needham Aggressive vs. Needham Aggressive Growth | Needham Aggressive vs. Oberweis Micro Cap Fund |
| Eagle Small vs. Touchstone Large Cap | Eagle Small vs. Guidemark Large Cap | Eagle Small vs. The Hartford Servative | Eagle Small vs. Enhanced Large Pany |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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