Correlation Between Needham Aggressive and Guggenheim Small
Can any of the company-specific risk be diversified away by investing in both Needham Aggressive and Guggenheim Small 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 Guggenheim Small 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 Guggenheim Small Cap, you can compare the effects of market volatilities on Needham Aggressive and Guggenheim Small 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 Guggenheim Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Needham Aggressive and Guggenheim Small.
Diversification Opportunities for Needham Aggressive and Guggenheim Small
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Needham and Guggenheim is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Needham Aggressive Growth and Guggenheim Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guggenheim Small 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 Guggenheim Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guggenheim Small Cap has no effect on the direction of Needham Aggressive i.e., Needham Aggressive and Guggenheim Small go up and down completely randomly.
Pair Corralation between Needham Aggressive and Guggenheim Small
If you would invest 4,981 in Needham Aggressive Growth on October 11, 2024 and sell it today you would earn a total of 41.00 from holding Needham Aggressive Growth or generate 0.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 2.5% |
| Values | Daily Returns |
Needham Aggressive Growth vs. Guggenheim Small Cap
Performance |
| Timeline |
| Needham Aggressive Growth |
| Guggenheim Small Cap |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Needham Aggressive and Guggenheim Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Needham Aggressive and Guggenheim Small
The main advantage of trading using opposite Needham Aggressive and Guggenheim Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Needham Aggressive position performs unexpectedly, Guggenheim Small 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 Guggenheim Small will offset losses from the drop in Guggenheim Small'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 |
| Guggenheim Small vs. Ab High Income | Guggenheim Small vs. Catalystsmh High Income | Guggenheim Small vs. Virtus High Yield | Guggenheim Small vs. Needham Aggressive 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |