Correlation Between Midcap Growth and Acrex
Can any of the company-specific risk be diversified away by investing in both Midcap Growth and Acrex 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 Midcap Growth and Acrex into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Midcap Growth Fund and Acrex, you can compare the effects of market volatilities on Midcap Growth and Acrex 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 Midcap Growth with a short position of Acrex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Midcap Growth and Acrex.
Diversification Opportunities for Midcap Growth and Acrex
-0.88 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Midcap and Acrex is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding Midcap Growth Fund and Acrex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acrex and Midcap Growth 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 Midcap Growth Fund are associated (or correlated) with Acrex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acrex has no effect on the direction of Midcap Growth i.e., Midcap Growth and Acrex go up and down completely randomly.
Pair Corralation between Midcap Growth and Acrex
If you would invest 1,202 in Midcap Growth Fund on September 28, 2024 and sell it today you would earn a total of 0.00 from holding Midcap Growth Fund or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 5.0% |
| Values | Daily Returns |
Midcap Growth Fund vs. Acrex
Performance |
| Timeline |
| Midcap Growth |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Strong
| Acrex |
Midcap Growth and Acrex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Midcap Growth and Acrex
The main advantage of trading using opposite Midcap Growth and Acrex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Midcap Growth position performs unexpectedly, Acrex 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 Acrex will offset losses from the drop in Acrex's long position.| Midcap Growth vs. Strategic Asset Management | Midcap Growth vs. Strategic Asset Management | Midcap Growth vs. Strategic Asset Management | Midcap Growth vs. Strategic Asset Management |
| Acrex vs. Lord Abbett Small | Acrex vs. Fidelity Small Cap | Acrex vs. Applied Finance Explorer | Acrex vs. Heartland Value Plus |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |