Correlation Between Midas Special and Cornerstone Aggressive

Can any of the company-specific risk be diversified away by investing in both Midas Special and Cornerstone Aggressive 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 Special and Cornerstone Aggressive into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Midas Special Fund and Cornerstone Aggressive Fund, you can compare the effects of market volatilities on Midas Special and Cornerstone Aggressive 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 Special with a short position of Cornerstone Aggressive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Midas Special and Cornerstone Aggressive.

Diversification Opportunities for Midas Special and Cornerstone Aggressive

0.0

Correlation Coefficient

Midas Special  Cornerstone Aggressive

Pay attention - limited upside

The 3 months correlation between Midas and Cornerstone is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Midas Special Fund and Cornerstone Aggressive Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cornerstone Aggressive and Midas Special 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 Special Fund are associated (or correlated) with Cornerstone Aggressive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cornerstone Aggressive has no effect on the direction of Midas Special i.e., Midas Special and Cornerstone Aggressive go up and down completely randomly.

Pair Corralation between Midas Special and Cornerstone Aggressive

If you would invest  0.00  in Midas Special Fund on December 30, 2024 and sell it today you would earn a total of  0.00  from holding Midas Special Fund or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.61%
Values	Daily Returns

Midas Special Fund  vs.  Cornerstone Aggressive Fund

Midas Special

Risk-Adjusted Performance

Very Weak

Over the last 90 days Midas Special Fund has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong technical and fundamental indicators, Midas Special is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Cornerstone Aggressive

Risk-Adjusted Performance

Very Weak

Over the last 90 days Cornerstone Aggressive Fund has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong technical and fundamental indicators, Cornerstone Aggressive is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Midas Special and Cornerstone Aggressive

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

The idea behind Midas Special Fund and Cornerstone Aggressive Fund 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.