Correlation Between Needham Aggressive and Select Us
Can any of the company-specific risk be diversified away by investing in both Needham Aggressive and Select Us 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 Select Us 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 Select Equity Fund, you can compare the effects of market volatilities on Needham Aggressive and Select Us 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 Select Us. Check out your portfolio center. Please also check ongoing floating volatility patterns of Needham Aggressive and Select Us.
Diversification Opportunities for Needham Aggressive and Select Us
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Needham and Select is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Needham Aggressive Growth and Select Equity Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Select Equity 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 Select Us. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Select Equity has no effect on the direction of Needham Aggressive i.e., Needham Aggressive and Select Us go up and down completely randomly.
Pair Corralation between Needham Aggressive and Select Us
Assuming the 90 days horizon Needham Aggressive Growth is expected to generate 1.6 times more return on investment than Select Us. However, Needham Aggressive is 1.6 times more volatile than Select Equity Fund. It trades about 0.07 of its potential returns per unit of risk. Select Equity Fund is currently generating about 0.1 per unit of risk. If you would invest 3,188 in Needham Aggressive Growth on August 25, 2024 and sell it today you would earn a total of 1,789 from holding Needham Aggressive Growth or generate 56.12% 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. Select Equity Fund
Performance |
| Timeline |
| Needham Aggressive Growth |
| Select Equity |
Needham Aggressive and Select Us Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Needham Aggressive and Select Us
The main advantage of trading using opposite Needham Aggressive and Select Us positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Needham Aggressive position performs unexpectedly, Select Us 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 Select Us will offset losses from the drop in Select Us' 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 |
| Select Us vs. Franklin High Income | Select Us vs. Pace High Yield | Select Us vs. Needham Aggressive Growth | Select Us vs. Goldman Sachs High |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |