Correlation Between Mid Cap and Crawford Dividend

Can any of the company-specific risk be diversified away by investing in both Mid Cap and Crawford Dividend 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 Mid Cap and Crawford Dividend into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Mid Cap Growth and Crawford Dividend Growth, you can compare the effects of market volatilities on Mid Cap and Crawford Dividend 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 Mid Cap with a short position of Crawford Dividend. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mid Cap and Crawford Dividend.

Diversification Opportunities for Mid Cap and Crawford Dividend

0.4

Correlation Coefficient

Mid Cap  Crawford Dividend

Very weak diversification

The 3 months correlation between Mid and Crawford is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Mid Cap Growth and Crawford Dividend Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crawford Dividend Growth and Mid Cap 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 Mid Cap Growth are associated (or correlated) with Crawford Dividend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crawford Dividend Growth has no effect on the direction of Mid Cap i.e., Mid Cap and Crawford Dividend go up and down completely randomly.

Pair Corralation between Mid Cap and Crawford Dividend

Assuming the 90 days horizon Mid Cap Growth is expected to under-perform the Crawford Dividend. But the mutual fund apears to be less risky and, when comparing its historical volatility, Mid Cap Growth is 1.11 times less risky than Crawford Dividend. The mutual fund trades about -0.42 of its potential returns per unit of risk. The Crawford Dividend Growth is currently generating about -0.31 of returns per unit of risk over similar time horizon. If you would invest  1,544  in Crawford Dividend Growth on October 5, 2024 and sell it today you would lose (148.00) from holding Crawford Dividend Growth or give up 9.59% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	95.24%
Values	Daily Returns

Mid Cap Growth  vs.  Crawford Dividend Growth

Mid Cap Growth

Risk-Adjusted Performance

5 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Mid Cap Growth are ranked lower than 5 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Mid Cap is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Crawford Dividend Growth

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Crawford Dividend Growth has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's forward indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Pair Trading with Mid Cap and Crawford Dividend

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

The idea behind Mid Cap Growth and Crawford Dividend Growth 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.