Correlation Between Needham Aggressive and International Investors
Can any of the company-specific risk be diversified away by investing in both Needham Aggressive and International Investors 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 International Investors 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 International Investors Gold, you can compare the effects of market volatilities on Needham Aggressive and International Investors 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 International Investors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Needham Aggressive and International Investors.
Diversification Opportunities for Needham Aggressive and International Investors
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Needham and International is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Needham Aggressive Growth and International Investors Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Investors 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 International Investors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Investors has no effect on the direction of Needham Aggressive i.e., Needham Aggressive and International Investors go up and down completely randomly.
Pair Corralation between Needham Aggressive and International Investors
Assuming the 90 days horizon Needham Aggressive Growth is expected to generate 0.79 times more return on investment than International Investors. However, Needham Aggressive Growth is 1.27 times less risky than International Investors. It trades about 0.09 of its potential returns per unit of risk. International Investors Gold is currently generating about 0.04 per unit of risk. If you would invest 3,019 in Needham Aggressive Growth on September 14, 2024 and sell it today you would earn a total of 2,161 from holding Needham Aggressive Growth or generate 71.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Needham Aggressive Growth vs. International Investors Gold
Performance |
| Timeline |
| Needham Aggressive Growth |
| International Investors |
Needham Aggressive and International Investors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Needham Aggressive and International Investors
The main advantage of trading using opposite Needham Aggressive and International Investors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Needham Aggressive position performs unexpectedly, International Investors 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 International Investors will offset losses from the drop in International Investors' 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 |
| International Investors vs. Pace High Yield | International Investors vs. Needham Aggressive Growth | International Investors vs. Ab Global Risk | International Investors vs. T Rowe Price |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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