Correlation Between Profunds-large Cap and Forward Balanced

Can any of the company-specific risk be diversified away by investing in both Profunds-large Cap and Forward Balanced 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 Profunds-large Cap and Forward Balanced into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Profunds Large Cap Growth and Forward Balanced Allocation, you can compare the effects of market volatilities on Profunds-large Cap and Forward Balanced 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 Profunds-large Cap with a short position of Forward Balanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Profunds-large Cap and Forward Balanced.

Diversification Opportunities for Profunds-large Cap and Forward Balanced

0.0

Correlation Coefficient

Profunds-large Cap  Forward Balanced

Pay attention - limited upside

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

Pair Corralation between Profunds-large Cap and Forward Balanced

If you would invest  0.00  in Forward Balanced Allocation on September 10, 2025 and sell it today you would earn a total of  0.00  from holding Forward Balanced Allocation or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	4.76%
Values	Daily Returns

Profunds Large Cap Growth  vs.  Forward Balanced Allocation

Profunds Large Cap

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Profunds Large Cap Growth are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Profunds-large Cap is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Forward Balanced All

Risk-Adjusted Performance

Solid

Over the last 90 days Forward Balanced Allocation has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Forward Balanced is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Profunds-large Cap and Forward Balanced

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

The idea behind Profunds Large Cap Growth and Forward Balanced Allocation 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 CEOs Directory module to screen CEOs from public companies around the world.