Correlation Between Meridian Growth and Mairs Power
Can any of the company-specific risk be diversified away by investing in both Meridian Growth and Mairs Power 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 Meridian Growth and Mairs Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Meridian Growth Fund and Mairs Power Growth, you can compare the effects of market volatilities on Meridian Growth and Mairs Power 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 Meridian Growth with a short position of Mairs Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meridian Growth and Mairs Power.
Diversification Opportunities for Meridian Growth and Mairs Power
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Meridian and Mairs is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Meridian Growth Fund and Mairs Power Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mairs Power Growth and Meridian Growth 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 Meridian Growth Fund are associated (or correlated) with Mairs Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mairs Power Growth has no effect on the direction of Meridian Growth i.e., Meridian Growth and Mairs Power go up and down completely randomly.
Pair Corralation between Meridian Growth and Mairs Power
Assuming the 90 days horizon Meridian Growth Fund is expected to generate 1.26 times more return on investment than Mairs Power. However, Meridian Growth is 1.26 times more volatile than Mairs Power Growth. It trades about 0.13 of its potential returns per unit of risk. Mairs Power Growth is currently generating about 0.15 per unit of risk. If you would invest 3,548 in Meridian Growth Fund on September 12, 2024 and sell it today you would earn a total of 267.00 from holding Meridian Growth Fund or generate 7.53% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Meridian Growth Fund vs. Mairs Power Growth
Performance |
Timeline |
Meridian Growth |
Mairs Power Growth |
Meridian Growth and Mairs Power Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Meridian Growth and Mairs Power
The main advantage of trading using opposite Meridian Growth and Mairs Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meridian Growth position performs unexpectedly, Mairs Power 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 Mairs Power will offset losses from the drop in Mairs Power's long position.Meridian Growth vs. Vanguard Financials Index | Meridian Growth vs. Mesirow Financial Small | Meridian Growth vs. Blackrock Financial Institutions | Meridian Growth vs. Transamerica Financial Life |
Mairs Power vs. Meridian Trarian Fund | Mairs Power vs. Mairs Power Balanced | Mairs Power vs. Clipper Fund Inc | Mairs Power vs. Meridian Growth Fund |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
Equity Valuation Check real value of public entities based on technical and fundamental data | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |