Correlation Between Aegis Value and Delaware Small
Can any of the company-specific risk be diversified away by investing in both Aegis Value and Delaware Small 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 Delaware Small 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 Delaware Small Cap, you can compare the effects of market volatilities on Aegis Value and Delaware Small 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 Delaware Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegis Value and Delaware Small.
Diversification Opportunities for Aegis Value and Delaware Small
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aegis and Delaware is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Aegis Value Fund and Delaware Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delaware Small Cap 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 Delaware Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delaware Small Cap has no effect on the direction of Aegis Value i.e., Aegis Value and Delaware Small go up and down completely randomly.
Pair Corralation between Aegis Value and Delaware Small
Assuming the 90 days horizon Aegis Value is expected to generate 2.2 times less return on investment than Delaware Small. But when comparing it to its historical volatility, Aegis Value Fund is 1.08 times less risky than Delaware Small. It trades about 0.05 of its potential returns per unit of risk. Delaware Small Cap is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 7,332 in Delaware Small Cap on August 25, 2024 and sell it today you would earn a total of 1,133 from holding Delaware Small Cap or generate 15.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aegis Value Fund vs. Delaware Small Cap
Performance |
| Timeline |
| Aegis Value Fund |
| Delaware Small Cap |
Aegis Value and Delaware Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegis Value and Delaware Small
The main advantage of trading using opposite Aegis Value and Delaware Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegis Value position performs unexpectedly, Delaware Small 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 Delaware Small will offset losses from the drop in Delaware Small's long position.| Aegis Value vs. Nuveen Global Real | Aegis Value vs. T Rowe Price | Aegis Value vs. Wisdomtree Siegel Global | Aegis Value vs. T Rowe Price |
| Delaware Small vs. Lebenthal Lisanti Small | Delaware Small vs. Hodges Small Cap | Delaware Small vs. Oberweis Small Cap Opportunities | Delaware Small vs. Aegis Value 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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