Needham Small Correlations

NESGX Fund

USD 18.44 0.15 0.81%

The current 90-days correlation between Needham Small Cap and Needham Aggressive Growth is 0.12 (i.e., Average diversification). The correlation of Needham Small is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak. If the correlation is 0, the equities are not correlated; they are entirely random.

Needham Small Correlation With Market

Weak diversification

The correlation between Needham Small Cap and DJI is 0.34 (i.e., Weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Needham Small Cap and DJI in the same portfolio, assuming nothing else is changed.

Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Needham Small Cap. Also, note that the market value of any mutual fund could be closely tied with the direction of predictive economic indicators such as signals in price.

Moving together with Needham Mutual Fund

0.88	NEAIX	Needham Aggressive Growth	Pair Corr
0.61	NEAGX	Needham Aggressive Growth	Pair Corr
0.62	NEEGX	Needham Growth	Pair Corr
0.7	NESIX	Needham Small Cap	Pair Corr

Related Correlations Analysis

	NEAGX	NEEGX	BIOPX	JMCGX	ICMAX
NEAGX		0.89	0.68	0.63	0.0	NEAGX
NEEGX	0.89		0.58	0.5	0.0	NEEGX
BIOPX	0.68	0.58		0.62	0.0	BIOPX
JMCGX	0.63	0.5	0.62		0.0	JMCGX
ICMAX	0.0	0.0	0.0	0.0		ICMAX
	NEAGX	NEEGX	BIOPX	JMCGX	ICMAX

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

NEEGX	+ 0.89	NEAGX
BIOPX	+ 0.68	NEAGX
JMCGX	+ 0.63	NEAGX
JMCGX	+ 0.62	BIOPX
BIOPX	+ 0.58	NEEGX
JMCGX	+ 0.5	NEEGX

High negative correlations

ICMAX	- 0.0	JMCGX
ICMAX	- 0.0	BIOPX
ICMAX	- 0.0	NEEGX
ICMAX	- 0.0	NEAGX

Risk-Adjusted Indicators

There is a big difference between Needham Mutual Fund performing well and Needham Small Mutual Fund doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Needham Small's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
NEAGX	1.08	0.06	0.04	0.07	1.40	(1.15)	2.24	(1.61)	7.53
NEEGX	1.13	0.03	0.02	0.04	1.61	(1.12)	2.47	(1.99)	8.60
BIOPX	1.03	0.08	0.05	0.10	1.50	(1.05)	2.18	(2.08)	8.11
JMCGX	1.21	0.18	0.12	0.26	1.30	(1.44)	2.73	(2.21)	6.80
ICMAX	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00

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