Correlation Between Pro-blend(r) Moderate and Appleseed Fund

Can any of the company-specific risk be diversified away by investing in both Pro-blend(r) Moderate and Appleseed Fund 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 Pro-blend(r) Moderate and Appleseed Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Pro Blend Moderate Term and Appleseed Fund Appleseed, you can compare the effects of market volatilities on Pro-blend(r) Moderate and Appleseed Fund 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 Pro-blend(r) Moderate with a short position of Appleseed Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pro-blend(r) Moderate and Appleseed Fund.

Diversification Opportunities for Pro-blend(r) Moderate and Appleseed Fund

0.96

Correlation Coefficient

Pro-blend(r) Moderate  Appleseed Fund

Almost no diversification

The 3 months correlation between Pro-blend(r) and Appleseed is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Pro Blend Moderate Term and Appleseed Fund Appleseed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Appleseed Fund Appleseed and Pro-blend(r) Moderate 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 Pro Blend Moderate Term are associated (or correlated) with Appleseed Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Appleseed Fund Appleseed has no effect on the direction of Pro-blend(r) Moderate i.e., Pro-blend(r) Moderate and Appleseed Fund go up and down completely randomly.

Pair Corralation between Pro-blend(r) Moderate and Appleseed Fund

Assuming the 90 days horizon Pro-blend(r) Moderate is expected to generate 1.99 times less return on investment than Appleseed Fund. But when comparing it to its historical volatility, Pro Blend Moderate Term is 1.57 times less risky than Appleseed Fund. It trades about 0.28 of its potential returns per unit of risk. Appleseed Fund Appleseed is currently generating about 0.36 of returns per unit of risk over similar time horizon. If you would invest  1,373  in Appleseed Fund Appleseed on April 20, 2025 and sell it today you would earn a total of  211.00  from holding Appleseed Fund Appleseed or generate 15.37% return on investment over 90 days.

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

Pro Blend Moderate Term  vs.  Appleseed Fund Appleseed

Pro-blend(r) Moderate

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Pro Blend Moderate Term are ranked lower than 22 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Pro-blend(r) Moderate may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Appleseed Fund Appleseed

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Appleseed Fund Appleseed are ranked lower than 28 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak essential indicators, Appleseed Fund showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Pro-blend(r) Moderate and Appleseed Fund

The main advantage of trading using opposite Pro-blend(r) Moderate and Appleseed Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pro-blend(r) Moderate position performs unexpectedly, Appleseed Fund 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 Appleseed Fund will offset losses from the drop in Appleseed Fund's long position.

The idea behind Pro Blend Moderate Term and Appleseed Fund Appleseed 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.