Correlation Between Needham Aggressive and Champlain Mid
Can any of the company-specific risk be diversified away by investing in both Needham Aggressive and Champlain Mid 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 Champlain Mid 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 Champlain Mid Cap, you can compare the effects of market volatilities on Needham Aggressive and Champlain Mid 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 Champlain Mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Needham Aggressive and Champlain Mid.
Diversification Opportunities for Needham Aggressive and Champlain Mid
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Needham and Champlain is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Needham Aggressive Growth and Champlain Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Champlain Mid 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 Champlain Mid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Champlain Mid Cap has no effect on the direction of Needham Aggressive i.e., Needham Aggressive and Champlain Mid go up and down completely randomly.
Pair Corralation between Needham Aggressive and Champlain Mid
Assuming the 90 days horizon Needham Aggressive Growth is expected to generate 1.56 times more return on investment than Champlain Mid. However, Needham Aggressive is 1.56 times more volatile than Champlain Mid Cap. It trades about 0.2 of its potential returns per unit of risk. Champlain Mid Cap is currently generating about 0.06 per unit of risk. If you would invest 4,900 in Needham Aggressive Growth on October 19, 2024 and sell it today you would earn a total of 235.00 from holding Needham Aggressive Growth or generate 4.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Needham Aggressive Growth vs. Champlain Mid Cap
Performance |
| Timeline |
| Needham Aggressive Growth |
| Champlain Mid Cap |
Needham Aggressive and Champlain Mid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Needham Aggressive and Champlain Mid
The main advantage of trading using opposite Needham Aggressive and Champlain Mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Needham Aggressive position performs unexpectedly, Champlain Mid 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 Champlain Mid will offset losses from the drop in Champlain Mid'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 |
| Champlain Mid vs. Champlain Small Pany | Champlain Mid vs. T Rowe Price | Champlain Mid vs. American Mutual Fund | Champlain Mid vs. Loomis Sayles 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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