Correlation Between Mid-cap Profund and Mid-cap 15x

Can any of the company-specific risk be diversified away by investing in both Mid-cap Profund and Mid-cap 15x 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 Mid-cap Profund and Mid-cap 15x into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Mid Cap Profund Mid Cap and Mid Cap 15x Strategy, you can compare the effects of market volatilities on Mid-cap Profund and Mid-cap 15x 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 Profund with a short position of Mid-cap 15x. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mid-cap Profund and Mid-cap 15x.

Diversification Opportunities for Mid-cap Profund and Mid-cap 15x

0.45

Correlation Coefficient

Mid-cap Profund  Mid-cap 15x

Very weak diversification

The 3 months correlation between Mid-cap and Mid-cap is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Mid Cap Profund Mid Cap and Mid Cap 15x Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mid Cap 15x and Mid-cap Profund 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 Profund Mid Cap are associated (or correlated) with Mid-cap 15x. 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 15x has no effect on the direction of Mid-cap Profund i.e., Mid-cap Profund and Mid-cap 15x go up and down completely randomly.

Pair Corralation between Mid-cap Profund and Mid-cap 15x

Assuming the 90 days horizon Mid-cap Profund is expected to generate 1.44 times less return on investment than Mid-cap 15x. But when comparing it to its historical volatility, Mid Cap Profund Mid Cap is 1.5 times less risky than Mid-cap 15x. It trades about 0.2 of its potential returns per unit of risk. Mid Cap 15x Strategy is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest  9,017  in Mid Cap 15x Strategy on April 30, 2025 and sell it today you would earn a total of  1,672  from holding Mid Cap 15x Strategy or generate 18.54% return on investment over 90 days.

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

Mid Cap Profund Mid Cap  vs.  Mid Cap 15x Strategy

Mid Cap Profund

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Mid Cap Profund Mid Cap are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Mid-cap Profund showed solid returns over the last few months and may actually be approaching a breakup point.

Mid Cap 15x

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Mid Cap 15x Strategy are ranked lower than 15 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, Mid-cap 15x showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Mid-cap Profund and Mid-cap 15x

The main advantage of trading using opposite Mid-cap Profund and Mid-cap 15x positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mid-cap Profund position performs unexpectedly, Mid-cap 15x 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 15x will offset losses from the drop in Mid-cap 15x's long position.

The idea behind Mid Cap Profund Mid Cap and Mid Cap 15x Strategy 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 Transaction History module to view history of all your transactions and understand their impact on performance.