Correlation Between Needham Aggressive and 1290 High
Can any of the company-specific risk be diversified away by investing in both Needham Aggressive and 1290 High 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 1290 High 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 1290 High Yield, you can compare the effects of market volatilities on Needham Aggressive and 1290 High 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 1290 High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Needham Aggressive and 1290 High.
Diversification Opportunities for Needham Aggressive and 1290 High
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Needham and 1290 is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Needham Aggressive Growth and 1290 High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 1290 High Yield 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 1290 High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 1290 High Yield has no effect on the direction of Needham Aggressive i.e., Needham Aggressive and 1290 High go up and down completely randomly.
Pair Corralation between Needham Aggressive and 1290 High
Assuming the 90 days horizon Needham Aggressive Growth is expected to generate 12.72 times more return on investment than 1290 High. However, Needham Aggressive is 12.72 times more volatile than 1290 High Yield. It trades about 0.17 of its potential returns per unit of risk. 1290 High Yield is currently generating about 0.2 per unit of risk. If you would invest 4,834 in Needham Aggressive Growth on August 29, 2024 and sell it today you would earn a total of 306.00 from holding Needham Aggressive Growth or generate 6.33% 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. 1290 High Yield
Performance |
| Timeline |
| Needham Aggressive Growth |
| 1290 High Yield |
Needham Aggressive and 1290 High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Needham Aggressive and 1290 High
The main advantage of trading using opposite Needham Aggressive and 1290 High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Needham Aggressive position performs unexpectedly, 1290 High 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 1290 High will offset losses from the drop in 1290 High's long position.| Needham Aggressive vs. Putnam Equity Income | Needham Aggressive vs. Putnam Growth Opportunities | Needham Aggressive vs. HUMANA INC | Needham Aggressive vs. Aquagold International |
| 1290 High vs. Needham Aggressive Growth | 1290 High vs. Victory High Income | 1290 High vs. Calvert High Yield | 1290 High vs. California High Yield Municipal |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |