Correlation Between Df Dent and Mndvux

Can any of the company-specific risk be diversified away by investing in both Df Dent and Mndvux 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 Df Dent and Mndvux into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Df Dent Midcap and Mndvux, you can compare the effects of market volatilities on Df Dent and Mndvux 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 Df Dent with a short position of Mndvux. Check out your portfolio center. Please also check ongoing floating volatility patterns of Df Dent and Mndvux.

Diversification Opportunities for Df Dent and Mndvux

0.96

Correlation Coefficient

Df Dent  Mndvux

Almost no diversification

The 3 months correlation between DFMLX and Mndvux is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Df Dent Midcap and Mndvux in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mndvux and Df Dent 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 Df Dent Midcap are associated (or correlated) with Mndvux. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mndvux has no effect on the direction of Df Dent i.e., Df Dent and Mndvux go up and down completely randomly.

Pair Corralation between Df Dent and Mndvux

Assuming the 90 days horizon Df Dent Midcap is expected to generate 1.26 times more return on investment than Mndvux. However, Df Dent is 1.26 times more volatile than Mndvux. It trades about 0.09 of its potential returns per unit of risk. Mndvux is currently generating about 0.11 per unit of risk. If you would invest  3,741  in Df Dent Midcap on May 12, 2025 and sell it today you would earn a total of  180.00  from holding Df Dent Midcap or generate 4.81% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Df Dent Midcap  vs.  Mndvux

Df Dent Midcap

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Df Dent Midcap are ranked lower than 7 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong essential indicators, Df Dent is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Mndvux

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Mndvux are ranked lower than 8 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental indicators, Mndvux is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Df Dent and Mndvux

The main advantage of trading using opposite Df Dent and Mndvux positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Df Dent position performs unexpectedly, Mndvux 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 Mndvux will offset losses from the drop in Mndvux's long position.

The idea behind Df Dent Midcap and Mndvux 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.

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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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.