Correlation Between Mid Cap and GLOBAL
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By analyzing existing cross correlation between Mid Cap Growth and GLOBAL PAYMENTS INC, you can compare the effects of market volatilities on Mid Cap and GLOBAL 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 Mid Cap with a short position of GLOBAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mid Cap and GLOBAL.
Diversification Opportunities for Mid Cap and GLOBAL
Pay attention - limited upside
The 3 months correlation between Mid and GLOBAL is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Mid Cap Growth and GLOBAL PAYMENTS INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GLOBAL PAYMENTS INC and Mid Cap 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 Mid Cap Growth are associated (or correlated) with GLOBAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GLOBAL PAYMENTS INC has no effect on the direction of Mid Cap i.e., Mid Cap and GLOBAL go up and down completely randomly.
Pair Corralation between Mid Cap and GLOBAL
Assuming the 90 days horizon Mid Cap Growth is expected to generate 1.82 times more return on investment than GLOBAL. However, Mid Cap is 1.82 times more volatile than GLOBAL PAYMENTS INC. It trades about 0.15 of its potential returns per unit of risk. GLOBAL PAYMENTS INC is currently generating about -0.02 per unit of risk. If you would invest 3,624 in Mid Cap Growth on September 1, 2024 and sell it today you would earn a total of 807.00 from holding Mid Cap Growth or generate 22.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.43% |
| Values | Daily Returns |
Mid Cap Growth vs. GLOBAL PAYMENTS INC
Performance |
| Timeline |
| Mid Cap Growth |
| GLOBAL PAYMENTS INC |
Mid Cap and GLOBAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mid Cap and GLOBAL
The main advantage of trading using opposite Mid Cap and GLOBAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mid Cap position performs unexpectedly, GLOBAL 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 GLOBAL will offset losses from the drop in GLOBAL's long position.| Mid Cap vs. Calamos Growth Fund | Mid Cap vs. Mid Cap Growth | Mid Cap vs. Allianzgi Nfj Mid Cap | Mid Cap vs. Davis New York |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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