Correlation Between Polen Growth and Conestoga Smid
Can any of the company-specific risk be diversified away by investing in both Polen Growth and Conestoga Smid 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 Polen Growth and Conestoga Smid into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Polen Growth Fund and Conestoga Smid Cap, you can compare the effects of market volatilities on Polen Growth and Conestoga Smid 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 Polen Growth with a short position of Conestoga Smid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Polen Growth and Conestoga Smid.
Diversification Opportunities for Polen Growth and Conestoga Smid
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Polen and Conestoga is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Polen Growth Fund and Conestoga Smid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Conestoga Smid Cap and Polen 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 Polen Growth Fund are associated (or correlated) with Conestoga Smid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Conestoga Smid Cap has no effect on the direction of Polen Growth i.e., Polen Growth and Conestoga Smid go up and down completely randomly.
Pair Corralation between Polen Growth and Conestoga Smid
Assuming the 90 days horizon Polen Growth Fund is expected to generate 0.9 times more return on investment than Conestoga Smid. However, Polen Growth Fund is 1.11 times less risky than Conestoga Smid. It trades about 0.08 of its potential returns per unit of risk. Conestoga Smid Cap is currently generating about 0.07 per unit of risk. If you would invest 3,645 in Polen Growth Fund on September 2, 2024 and sell it today you would earn a total of 1,198 from holding Polen Growth Fund or generate 32.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Polen Growth Fund vs. Conestoga Smid Cap
Performance |
| Timeline |
| Polen Growth |
| Conestoga Smid Cap |
Polen Growth and Conestoga Smid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Polen Growth and Conestoga Smid
The main advantage of trading using opposite Polen Growth and Conestoga Smid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Polen Growth position performs unexpectedly, Conestoga Smid 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 Conestoga Smid will offset losses from the drop in Conestoga Smid's long position.| Polen Growth vs. Polen Growth Fund | Polen Growth vs. Edgewood Growth Fund | Polen Growth vs. Akre Focus Fund | Polen Growth vs. Brown Advisory Sustainable |
| Conestoga Smid vs. Conestoga Small Cap | Conestoga Smid vs. Ycg Enhanced Fund | Conestoga Smid vs. Df Dent Premier | Conestoga Smid vs. Polen Growth Fund |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Stocks Directory Find actively traded stocks across global markets | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |