Correlation Between Midas Fund and Midas Special
Can any of the company-specific risk be diversified away by investing in both Midas Fund and Midas Special 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 Midas Special 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 Midas Special Fund, you can compare the effects of market volatilities on Midas Fund and Midas Special 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 Midas Special. Check out your portfolio center. Please also check ongoing floating volatility patterns of Midas Fund and Midas Special.
Diversification Opportunities for Midas Fund and Midas Special
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Midas and Midas is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Midas Fund Midas and Midas Special Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Midas Special 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 Midas Special. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Midas Special has no effect on the direction of Midas Fund i.e., Midas Fund and Midas Special go up and down completely randomly.
Pair Corralation between Midas Fund and Midas Special
Assuming the 90 days horizon Midas Fund Midas is expected to under-perform the Midas Special. In addition to that, Midas Fund is 2.23 times more volatile than Midas Special Fund. It trades about -0.04 of its total potential returns per unit of risk. Midas Special Fund is currently generating about 0.18 per unit of volatility. If you would invest 3,255 in Midas Special Fund on September 15, 2024 and sell it today you would earn a total of 337.00 from holding Midas Special Fund or generate 10.35% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 98.46% |
Values | Daily Returns |
Midas Fund Midas vs. Midas Special Fund
Performance |
Timeline |
Midas Fund Midas |
Midas Special |
Midas Fund and Midas Special Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Midas Fund and Midas Special
The main advantage of trading using opposite Midas Fund and Midas Special positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Midas Fund position performs unexpectedly, Midas Special 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 Midas Special will offset losses from the drop in Midas Special's long position.Midas Fund vs. Gold And Precious | Midas Fund vs. World Precious Minerals | Midas Fund vs. Gabelli Gold Fund | Midas Fund vs. International Investors Gold |
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Check out your portfolio center.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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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