Correlation Between Needham Small and Ab Fixed
Can any of the company-specific risk be diversified away by investing in both Needham Small and Ab Fixed 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 Small and Ab Fixed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Needham Small Cap and Ab Fixed Income Shares, you can compare the effects of market volatilities on Needham Small and Ab Fixed 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 Small with a short position of Ab Fixed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Needham Small and Ab Fixed.
Diversification Opportunities for Needham Small and Ab Fixed
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Needham and AECXX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Needham Small Cap and Ab Fixed Income Shares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Fixed Income and Needham Small 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 Small Cap are associated (or correlated) with Ab Fixed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Fixed Income has no effect on the direction of Needham Small i.e., Needham Small and Ab Fixed go up and down completely randomly.
Pair Corralation between Needham Small and Ab Fixed
If you would invest 1,392 in Needham Small Cap on September 15, 2024 and sell it today you would earn a total of 539.00 from holding Needham Small Cap or generate 38.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 38.66% |
| Values | Daily Returns |
Needham Small Cap vs. Ab Fixed Income Shares
Performance |
| Timeline |
| Needham Small Cap |
| Ab Fixed Income |
Needham Small and Ab Fixed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Needham Small and Ab Fixed
The main advantage of trading using opposite Needham Small and Ab Fixed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Needham Small position performs unexpectedly, Ab Fixed 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 Ab Fixed will offset losses from the drop in Ab Fixed's long position.| Needham Small vs. Needham Aggressive Growth | Needham Small vs. Needham Growth Fund | Needham Small vs. Baron Opportunity Fund | Needham Small vs. Aquagold International |
| Ab Fixed vs. Ab Small Cap | Ab Fixed vs. Small Pany Growth | Ab Fixed vs. Needham Small Cap | Ab Fixed vs. Glg Intl Small |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |