Correlation Between Midas Fund and Value Line

Can any of the company-specific risk be diversified away by investing in both Midas Fund and Value Line 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 Value Line 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 Value Line Premier, you can compare the effects of market volatilities on Midas Fund and Value Line 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 Value Line. Check out your portfolio center. Please also check ongoing floating volatility patterns of Midas Fund and Value Line.

Diversification Opportunities for Midas Fund and Value Line

-0.6

Correlation Coefficient

Midas Fund  Value Line

Excellent diversification

The 3 months correlation between Midas and Value is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Midas Fund Midas and Value Line Premier in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Value Line Premier 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 Value Line. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Value Line Premier has no effect on the direction of Midas Fund i.e., Midas Fund and Value Line go up and down completely randomly.

Pair Corralation between Midas Fund and Value Line

Assuming the 90 days horizon Midas Fund Midas is expected to generate 3.92 times more return on investment than Value Line. However, Midas Fund is 3.92 times more volatile than Value Line Premier. It trades about -0.04 of its potential returns per unit of risk. Value Line Premier is currently generating about -0.17 per unit of risk. If you would invest  297.00  in Midas Fund Midas on August 2, 2025 and sell it today you would lose (11.00) from holding Midas Fund Midas or give up 3.7% of portfolio value over 90 days.

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

Midas Fund Midas  vs.  Value Line Premier

Midas Fund Midas

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Midas Fund Midas are ranked lower than 18 (%) 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.

Value Line Premier

Risk-Adjusted Performance

Weakest

Over the last 90 days Value Line Premier has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Pair Trading with Midas Fund and Value Line

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

The idea behind Midas Fund Midas and Value Line Premier 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.