Correlation Between Large-cap Growth and Congress Large

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Large-cap Growth and Congress Large 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 Large-cap Growth and Congress Large into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Large Cap Growth Profund and Congress Large Cap, you can compare the effects of market volatilities on Large-cap Growth and Congress Large 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 Large-cap Growth with a short position of Congress Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Large-cap Growth and Congress Large.

Diversification Opportunities for Large-cap Growth and Congress Large

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Large-cap and Congress is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding LARGE-CAP GROWTH PROFUND and CONGRESS LARGE CAP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Congress Large Cap and Large-cap 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 Large Cap Growth Profund are associated (or correlated) with Congress Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Congress Large Cap has no effect on the direction of Large-cap Growth i.e., Large-cap Growth and Congress Large go up and down completely randomly.

Pair Corralation between Large-cap Growth and Congress Large

If you would invest  13,435  in Large Cap Growth Profund on December 30, 2023 and sell it today you would earn a total of  1,870  from holding Large Cap Growth Profund or generate 13.92% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.2%
ValuesDaily Returns

LARGE-CAP GROWTH PROFUND  vs.  CONGRESS LARGE CAP

 Performance 
       Timeline  
Large-cap Growth Profund 

Risk-Adjusted Performance

17 of 100

 
Low
 
High
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in Large Cap Growth Profund are ranked lower than 17 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Large-cap Growth showed solid returns over the last few months and may actually be approaching a breakup point.
Congress Large Cap 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Solid
Over the last 90 days Congress Large Cap has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward indicators, Congress Large is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Large-cap Growth and Congress Large Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Large-cap Growth and Congress Large

The main advantage of trading using opposite Large-cap Growth and Congress Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Large-cap Growth position performs unexpectedly, Congress Large 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 Congress Large will offset losses from the drop in Congress Large's long position.
The idea behind Large Cap Growth Profund and Congress Large Cap pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.

Other Complementary Tools

AI Portfolio Architect
Use AI to generate optimal portfolios and find profitable investment opportunities
Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges
Portfolio Comparator
Compare the composition, asset allocations and performance of any two portfolios in your account
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Volatility Analysis
Get historical volatility and risk analysis based on latest market data
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
CEOs Directory
Screen CEOs from public companies around the world
Global Correlations
Find global opportunities by holding instruments from different markets
Portfolio Rebalancing
Analyze risk-adjusted returns against different time horizons to find asset-allocation targets
Companies Directory
Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals
Portfolio Optimization
Compute new portfolio that will generate highest expected return given your specified tolerance for risk