Correlation Between Meeder Funds and Victory Rs

Can any of the company-specific risk be diversified away by investing in both Meeder Funds and Victory Rs 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 Meeder Funds and Victory Rs into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Meeder Funds and Victory Rs Select, you can compare the effects of market volatilities on Meeder Funds and Victory Rs 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 Meeder Funds with a short position of Victory Rs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meeder Funds and Victory Rs.

Diversification Opportunities for Meeder Funds and Victory Rs

0.6

Correlation Coefficient

Meeder Funds  Victory Rs

Poor diversification

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

Pair Corralation between Meeder Funds and Victory Rs

Assuming the 90 days horizon Meeder Funds is expected to generate 19.1 times less return on investment than Victory Rs. But when comparing it to its historical volatility, Meeder Funds is 8.52 times less risky than Victory Rs. It trades about 0.13 of its potential returns per unit of risk. Victory Rs Select is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest  1,051  in Victory Rs Select on September 2, 2024 and sell it today you would earn a total of  219.00  from holding Victory Rs Select or generate 20.84% return on investment over 90 days.

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

Meeder Funds   vs.  Victory Rs Select

Meeder Funds

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Meeder Funds are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Meeder Funds is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Victory Rs Select

Risk-Adjusted Performance

22 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Victory Rs Select are ranked lower than 22 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Victory Rs showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Meeder Funds and Victory Rs

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

The idea behind Meeder Funds and Victory Rs Select 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.