Correlation Between Aegis Value and Eic Value
Can any of the company-specific risk be diversified away by investing in both Aegis Value and Eic Value 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 Eic Value 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 Eic Value Fund, you can compare the effects of market volatilities on Aegis Value and Eic Value 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 Eic Value. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegis Value and Eic Value.
Diversification Opportunities for Aegis Value and Eic Value
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aegis and Eic is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Aegis Value Fund and Eic Value Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eic Value 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 Eic Value. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eic Value Fund has no effect on the direction of Aegis Value i.e., Aegis Value and Eic Value go up and down completely randomly.
Pair Corralation between Aegis Value and Eic Value
Assuming the 90 days horizon Aegis Value is expected to generate 1.13 times less return on investment than Eic Value. In addition to that, Aegis Value is 1.72 times more volatile than Eic Value Fund. It trades about 0.06 of its total potential returns per unit of risk. Eic Value Fund is currently generating about 0.11 per unit of volatility. If you would invest 1,477 in Eic Value Fund on August 31, 2024 and sell it today you would earn a total of 445.00 from holding Eic Value Fund or generate 30.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aegis Value Fund vs. Eic Value Fund
Performance |
| Timeline |
| Aegis Value Fund |
| Eic Value Fund |
Aegis Value and Eic Value Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegis Value and Eic Value
The main advantage of trading using opposite Aegis Value and Eic Value positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegis Value position performs unexpectedly, Eic Value 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 Eic Value will offset losses from the drop in Eic Value's long position.| Aegis Value vs. Cref Inflation Linked Bond | Aegis Value vs. Arrow Managed Futures | Aegis Value vs. Nationwide Inflation Protected Securities | Aegis Value vs. Asg Managed Futures |
| Eic Value vs. Rbc Funds Trust | Eic Value vs. Nasdaq 100 Index Fund | Eic Value vs. Victory Incore Fund | Eic Value vs. Shelton Funds |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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