Correlation Between Small-cap Profund and Bull Profund

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

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

Diversification Opportunities for Small-cap Profund and Bull Profund

0.94

Correlation Coefficient

Small-cap Profund  Bull Profund

Almost no diversification

The 3 months correlation between Small-cap and Bull is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Small Cap Profund Small Cap and Bull Profund Investor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bull Profund Investor and Small-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 Small Cap Profund Small Cap are associated (or correlated) with Bull Profund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bull Profund Investor has no effect on the direction of Small-cap Profund i.e., Small-cap Profund and Bull Profund go up and down completely randomly.

Pair Corralation between Small-cap Profund and Bull Profund

Assuming the 90 days horizon Small Cap Profund Small Cap is expected to generate 2.41 times more return on investment than Bull Profund. However, Small-cap Profund is 2.41 times more volatile than Bull Profund Investor. It trades about 0.21 of its potential returns per unit of risk. Bull Profund Investor is currently generating about 0.48 per unit of risk. If you would invest  12,028  in Small Cap Profund Small Cap on July 9, 2025 and sell it today you would earn a total of  454.00  from holding Small Cap Profund Small Cap or generate 3.77% return on investment over 90 days.

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

Small Cap Profund Small Cap  vs.  Bull Profund Investor

Small Cap Profund

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Small Cap Profund Small Cap are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Small-cap Profund may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Bull Profund Investor

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Bull Profund Investor are ranked lower than 17 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Bull Profund may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Pair Trading with Small-cap Profund and Bull Profund

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

The idea behind Small Cap Profund Small Cap and Bull Profund Investor 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.