Correlation Between Aegis Value and Harbor Small
Can any of the company-specific risk be diversified away by investing in both Aegis Value and Harbor 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 Harbor 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 Harbor Small Cap, you can compare the effects of market volatilities on Aegis Value and Harbor 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 Harbor Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegis Value and Harbor Small.
Diversification Opportunities for Aegis Value and Harbor Small
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aegis and Harbor is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Aegis Value Fund and Harbor Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harbor 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 Harbor Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harbor Small Cap has no effect on the direction of Aegis Value i.e., Aegis Value and Harbor Small go up and down completely randomly.
Pair Corralation between Aegis Value and Harbor Small
Assuming the 90 days horizon Aegis Value is expected to generate 1.19 times less return on investment than Harbor Small. In addition to that, Aegis Value is 1.02 times more volatile than Harbor Small Cap. It trades about 0.06 of its total potential returns per unit of risk. Harbor Small Cap is currently generating about 0.07 per unit of volatility. If you would invest 1,014 in Harbor Small Cap on September 12, 2024 and sell it today you would earn a total of 284.00 from holding Harbor Small Cap or generate 28.01% 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. Harbor Small Cap
Performance |
| Timeline |
| Aegis Value Fund |
| Harbor Small Cap |
Aegis Value and Harbor Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegis Value and Harbor Small
The main advantage of trading using opposite Aegis Value and Harbor Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegis Value position performs unexpectedly, Harbor 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 Harbor Small will offset losses from the drop in Harbor Small's long position.| Aegis Value vs. T Rowe Price | Aegis Value vs. Blrc Sgy Mnp | Aegis Value vs. Transamerica Intermediate Muni | Aegis Value vs. Baird Strategic Municipal |
| Harbor Small vs. Third Avenue Real | Harbor Small vs. Aegis Value Fund | Harbor Small vs. Litman Gregory Masters | Harbor Small vs. Marsico Growth 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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