Correlation Between Needham Aggressive and Ab High
Can any of the company-specific risk be diversified away by investing in both Needham Aggressive and Ab High 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 Ab High 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 Ab High Income, you can compare the effects of market volatilities on Needham Aggressive and Ab High 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 Ab High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Needham Aggressive and Ab High.
Diversification Opportunities for Needham Aggressive and Ab High
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Needham and AGDAX is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Needham Aggressive Growth and Ab High Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab High Income 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 Ab High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab High Income has no effect on the direction of Needham Aggressive i.e., Needham Aggressive and Ab High go up and down completely randomly.
Pair Corralation between Needham Aggressive and Ab High
Assuming the 90 days horizon Needham Aggressive Growth is expected to generate 10.64 times more return on investment than Ab High. However, Needham Aggressive is 10.64 times more volatile than Ab High Income. It trades about 0.12 of its potential returns per unit of risk. Ab High Income is currently generating about 0.23 per unit of risk. If you would invest 4,757 in Needham Aggressive Growth on August 25, 2024 and sell it today you would earn a total of 220.00 from holding Needham Aggressive Growth or generate 4.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Needham Aggressive Growth vs. Ab High Income
Performance |
| Timeline |
| Needham Aggressive Growth |
| Ab High Income |
Needham Aggressive and Ab High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Needham Aggressive and Ab High
The main advantage of trading using opposite Needham Aggressive and Ab High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Needham Aggressive position performs unexpectedly, Ab High 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 Ab High will offset losses from the drop in Ab High's long position.| Needham Aggressive vs. Needham Aggressive Growth | Needham Aggressive vs. Needham Small Cap | Needham Aggressive vs. Ultramid Cap Profund Ultramid Cap | Needham Aggressive vs. Fidelity Advisor Semiconductors |
| Ab High vs. Short Precious Metals | Ab High vs. Fidelity Advisor Gold | Ab High vs. Oppenheimer Gold Special | Ab High vs. Invesco Gold Special |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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