Correlation Between Equity Growth and Oberweis Emerging
Can any of the company-specific risk be diversified away by investing in both Equity Growth and Oberweis Emerging 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 Equity Growth and Oberweis Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Equity Growth Fund and Oberweis Emerging Markets, you can compare the effects of market volatilities on Equity Growth and Oberweis Emerging 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 Equity Growth with a short position of Oberweis Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Equity Growth and Oberweis Emerging.
Diversification Opportunities for Equity Growth and Oberweis Emerging
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Equity and Oberweis is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Equity Growth Fund and Oberweis Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oberweis Emerging Markets and Equity 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 Equity Growth Fund are associated (or correlated) with Oberweis Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oberweis Emerging Markets has no effect on the direction of Equity Growth i.e., Equity Growth and Oberweis Emerging go up and down completely randomly.
Pair Corralation between Equity Growth and Oberweis Emerging
Assuming the 90 days horizon Equity Growth Fund is expected to generate 0.4 times more return on investment than Oberweis Emerging. However, Equity Growth Fund is 2.5 times less risky than Oberweis Emerging. It trades about 0.13 of its potential returns per unit of risk. Oberweis Emerging Markets is currently generating about -0.05 per unit of risk. If you would invest 3,001 in Equity Growth Fund on September 1, 2024 and sell it today you would earn a total of 435.00 from holding Equity Growth Fund or generate 14.5% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 95.24% |
Values | Daily Returns |
Equity Growth Fund vs. Oberweis Emerging Markets
Performance |
Timeline |
Equity Growth |
Oberweis Emerging Markets |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Equity Growth and Oberweis Emerging Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Equity Growth and Oberweis Emerging
The main advantage of trading using opposite Equity Growth and Oberweis Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Equity Growth position performs unexpectedly, Oberweis Emerging 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 Oberweis Emerging will offset losses from the drop in Oberweis Emerging's long position.Equity Growth vs. Oklahoma College Savings | Equity Growth vs. Ab Bond Inflation | Equity Growth vs. Cref Inflation Linked Bond | Equity Growth vs. Ab Bond Inflation |
Oberweis Emerging vs. Oberweis Micro Cap Fund | Oberweis Emerging vs. Wasatch Emerging India | Oberweis Emerging vs. Driehaus Emerging Markets | Oberweis Emerging vs. Wasatch Emerging Markets |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Commodity Directory Find actively traded commodities issued by global exchanges | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume |