Correlation Between Midcap Growth and Qs Global

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

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

Diversification Opportunities for Midcap Growth and Qs Global

-0.1

Correlation Coefficient

Midcap Growth  Qs Global

Good diversification

The 3 months correlation between Midcap and SMYIX is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Midcap Growth Fund and Qs Global Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qs Global Equity and Midcap 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 Midcap Growth Fund are associated (or correlated) with Qs Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qs Global Equity has no effect on the direction of Midcap Growth i.e., Midcap Growth and Qs Global go up and down completely randomly.

Pair Corralation between Midcap Growth and Qs Global

Assuming the 90 days horizon Midcap Growth Fund is expected to under-perform the Qs Global. In addition to that, Midcap Growth is 6.17 times more volatile than Qs Global Equity. It trades about -0.11 of its total potential returns per unit of risk. Qs Global Equity is currently generating about 0.23 per unit of volatility. If you would invest  2,677  in Qs Global Equity on July 3, 2025 and sell it today you would earn a total of  212.00  from holding Qs Global Equity or generate 7.92% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	90.32%
Values	Daily Returns

Midcap Growth Fund  vs.  Qs Global Equity

Midcap Growth

Risk-Adjusted Performance

Weakest

Over the last 90 days Midcap Growth Fund has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's basic indicators remain fairly strong which may send shares a bit higher in November 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Qs Global Equity

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Qs Global Equity are ranked lower than 18 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Qs Global may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Pair Trading with Midcap Growth and Qs Global

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

The idea behind Midcap Growth Fund and Qs Global Equity 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.