Correlation Between Qs Growth and Mid-cap Profund

Can any of the company-specific risk be diversified away by investing in both Qs Growth and Mid-cap Profund 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 Qs Growth and Mid-cap Profund into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Qs Growth Fund and Mid Cap Profund Mid Cap, you can compare the effects of market volatilities on Qs Growth and Mid-cap Profund 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 Qs Growth with a short position of Mid-cap Profund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qs Growth and Mid-cap Profund.

Diversification Opportunities for Qs Growth and Mid-cap Profund

0.97

Correlation Coefficient

Qs Growth  Mid-cap Profund

Almost no diversification

The 3 months correlation between LLLRX and Mid-cap is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Qs Growth Fund and Mid Cap Profund Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mid Cap Profund and Qs 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 Qs Growth Fund are associated (or correlated) with Mid-cap Profund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mid Cap Profund has no effect on the direction of Qs Growth i.e., Qs Growth and Mid-cap Profund go up and down completely randomly.

Pair Corralation between Qs Growth and Mid-cap Profund

Assuming the 90 days horizon Qs Growth Fund is expected to generate 0.66 times more return on investment than Mid-cap Profund. However, Qs Growth Fund is 1.52 times less risky than Mid-cap Profund. It trades about 0.2 of its potential returns per unit of risk. Mid Cap Profund Mid Cap is currently generating about 0.11 per unit of risk. If you would invest  1,590  in Qs Growth Fund on May 6, 2025 and sell it today you would earn a total of  126.00  from holding Qs Growth Fund or generate 7.92% return on investment over 90 days.

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

Qs Growth Fund  vs.  Mid Cap Profund Mid Cap

Qs Growth Fund

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Qs Growth Fund are ranked lower than 15 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Qs Growth may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Mid Cap Profund

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Mid Cap Profund Mid Cap are ranked lower than 8 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Mid-cap Profund may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Qs Growth and Mid-cap Profund

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

The idea behind Qs Growth Fund and Mid Cap Profund Mid 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.

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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 Global Correlations module to find global opportunities by holding instruments from different markets.