Correlation Between Needham Aggressive and Simt Multi
Can any of the company-specific risk be diversified away by investing in both Needham Aggressive and Simt Multi 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 Simt Multi 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 Simt Multi Strategy Alternative, you can compare the effects of market volatilities on Needham Aggressive and Simt Multi 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 Simt Multi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Needham Aggressive and Simt Multi.
Diversification Opportunities for Needham Aggressive and Simt Multi
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Needham and Simt is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Needham Aggressive Growth and Simt Multi Strategy Alternativ in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simt Multi Strategy 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 Simt Multi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simt Multi Strategy has no effect on the direction of Needham Aggressive i.e., Needham Aggressive and Simt Multi go up and down completely randomly.
Pair Corralation between Needham Aggressive and Simt Multi
Assuming the 90 days horizon Needham Aggressive Growth is expected to generate 5.42 times more return on investment than Simt Multi. However, Needham Aggressive is 5.42 times more volatile than Simt Multi Strategy Alternative. It trades about 0.17 of its potential returns per unit of risk. Simt Multi Strategy Alternative is currently generating about 0.19 per unit of risk. If you would invest 4,934 in Needham Aggressive Growth on September 13, 2024 and sell it today you would earn a total of 246.00 from holding Needham Aggressive Growth or generate 4.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Needham Aggressive Growth vs. Simt Multi Strategy Alternativ
Performance |
| Timeline |
| Needham Aggressive Growth |
| Simt Multi Strategy |
Needham Aggressive and Simt Multi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Needham Aggressive and Simt Multi
The main advantage of trading using opposite Needham Aggressive and Simt Multi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Needham Aggressive position performs unexpectedly, Simt Multi 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 Simt Multi will offset losses from the drop in Simt Multi'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 |
| Simt Multi vs. Simt Multi Asset Accumulation | Simt Multi vs. Saat Market Growth | Simt Multi vs. Simt Real Return | Simt Multi vs. Simt Small Cap |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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