Correlation Between Midas Fund and Semiconductor Ultrasector

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

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

Diversification Opportunities for Midas Fund and Semiconductor Ultrasector

0.31

Correlation Coefficient

Midas Fund  Semiconductor Ultrasector

Weak diversification

The 3 months correlation between Midas and Semiconductor is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Midas Fund Midas and Semiconductor Ultrasector Prof in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Semiconductor Ultrasector and Midas Fund 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 Midas Fund Midas are associated (or correlated) with Semiconductor Ultrasector. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Semiconductor Ultrasector has no effect on the direction of Midas Fund i.e., Midas Fund and Semiconductor Ultrasector go up and down completely randomly.

Pair Corralation between Midas Fund and Semiconductor Ultrasector

Assuming the 90 days horizon Midas Fund is expected to generate 2.34 times less return on investment than Semiconductor Ultrasector. But when comparing it to its historical volatility, Midas Fund Midas is 1.17 times less risky than Semiconductor Ultrasector. It trades about 0.13 of its potential returns per unit of risk. Semiconductor Ultrasector Profund is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest  3,804  in Semiconductor Ultrasector Profund on May 25, 2025 and sell it today you would earn a total of  1,557  from holding Semiconductor Ultrasector Profund or generate 40.93% return on investment over 90 days.

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

Midas Fund Midas  vs.  Semiconductor Ultrasector Prof

Midas Fund Midas

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Midas Fund Midas are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Midas Fund showed solid returns over the last few months and may actually be approaching a breakup point.

Semiconductor Ultrasector

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Semiconductor Ultrasector Profund are ranked lower than 21 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Semiconductor Ultrasector showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Midas Fund and Semiconductor Ultrasector

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

The idea behind Midas Fund Midas and Semiconductor Ultrasector Profund 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.