Correlation Between Aegis Value and Auer Growth
Can any of the company-specific risk be diversified away by investing in both Aegis Value and Auer Growth 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 Aegis Value and Auer Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aegis Value Fund and Auer Growth Fund, you can compare the effects of market volatilities on Aegis Value and Auer Growth 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 Aegis Value with a short position of Auer Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegis Value and Auer Growth.
Diversification Opportunities for Aegis Value and Auer Growth
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Aegis and Auer is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Aegis Value Fund and Auer Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Auer Growth Fund and Aegis Value 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 Aegis Value Fund are associated (or correlated) with Auer Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Auer Growth Fund has no effect on the direction of Aegis Value i.e., Aegis Value and Auer Growth go up and down completely randomly.
Pair Corralation between Aegis Value and Auer Growth
Assuming the 90 days horizon Aegis Value Fund is expected to under-perform the Auer Growth. In addition to that, Aegis Value is 1.02 times more volatile than Auer Growth Fund. It trades about 0.0 of its total potential returns per unit of risk. Auer Growth Fund is currently generating about 0.15 per unit of volatility. If you would invest 1,724 in Auer Growth Fund on August 28, 2024 and sell it today you would earn a total of 57.00 from holding Auer Growth Fund or generate 3.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aegis Value Fund vs. Auer Growth Fund
Performance |
| Timeline |
| Aegis Value Fund |
| Auer Growth Fund |
Aegis Value and Auer Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegis Value and Auer Growth
The main advantage of trading using opposite Aegis Value and Auer Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegis Value position performs unexpectedly, Auer Growth 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 Auer Growth will offset losses from the drop in Auer Growth's long position.| Aegis Value vs. Western Asset Municipal | Aegis Value vs. Leggmason Partners Institutional | Aegis Value vs. Ab Value Fund | Aegis Value vs. Red Oak Technology |
| 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 |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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