Correlation Between Auer Growth and Wpg Partners
Can any of the company-specific risk be diversified away by investing in both Auer Growth and Wpg Partners 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 Auer Growth and Wpg Partners into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Auer Growth Fund and Wpg Partners Smallmicro, you can compare the effects of market volatilities on Auer Growth and Wpg Partners 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 Auer Growth with a short position of Wpg Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of Auer Growth and Wpg Partners.
Diversification Opportunities for Auer Growth and Wpg Partners
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Auer and Wpg is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Auer Growth Fund and Wpg Partners Smallmicro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wpg Partners Smallmicro and Auer 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 Auer Growth Fund are associated (or correlated) with Wpg Partners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wpg Partners Smallmicro has no effect on the direction of Auer Growth i.e., Auer Growth and Wpg Partners go up and down completely randomly.
Pair Corralation between Auer Growth and Wpg Partners
Assuming the 90 days horizon Auer Growth Fund is expected to generate 1.13 times more return on investment than Wpg Partners. However, Auer Growth is 1.13 times more volatile than Wpg Partners Smallmicro. It trades about 0.0 of its potential returns per unit of risk. Wpg Partners Smallmicro is currently generating about -0.05 per unit of risk. If you would invest 1,726 in Auer Growth Fund on September 14, 2024 and sell it today you would lose (2.00) from holding Auer Growth Fund or give up 0.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Auer Growth Fund vs. Wpg Partners Smallmicro
Performance |
| Timeline |
| Auer Growth Fund |
| Wpg Partners Smallmicro |
Auer Growth and Wpg Partners Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Auer Growth and Wpg Partners
The main advantage of trading using opposite Auer Growth and Wpg Partners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Auer Growth position performs unexpectedly, Wpg Partners 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 Wpg Partners will offset losses from the drop in Wpg Partners' long position.| Auer Growth vs. Lebenthal Lisanti Small | Auer Growth vs. Hodges Small Cap | Auer Growth vs. Schwartz Value Focused | Auer Growth vs. Oberweis Small Cap Opportunities |
| Wpg Partners vs. Aggressive Investors 1 | Wpg Partners vs. Buffalo Small Cap | Wpg Partners vs. Putnam Small Cap | Wpg Partners vs. Dreyfus Strategic Value |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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