Correlation Between Aegis Value and Marsico Growth
Can any of the company-specific risk be diversified away by investing in both Aegis Value and Marsico 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 Marsico 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 Marsico Growth Fund, you can compare the effects of market volatilities on Aegis Value and Marsico 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 Marsico Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegis Value and Marsico Growth.
Diversification Opportunities for Aegis Value and Marsico Growth
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aegis and Marsico is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Aegis Value Fund and Marsico Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marsico Growth 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 Marsico Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marsico Growth has no effect on the direction of Aegis Value i.e., Aegis Value and Marsico Growth go up and down completely randomly.
Pair Corralation between Aegis Value and Marsico Growth
Assuming the 90 days horizon Aegis Value is expected to generate 2.79 times less return on investment than Marsico Growth. In addition to that, Aegis Value is 1.07 times more volatile than Marsico Growth Fund. It trades about 0.05 of its total potential returns per unit of risk. Marsico Growth Fund is currently generating about 0.14 per unit of volatility. If you would invest 1,414 in Marsico Growth Fund on September 13, 2024 and sell it today you would earn a total of 1,488 from holding Marsico Growth Fund or generate 105.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Aegis Value Fund vs. Marsico Growth Fund
Performance |
| Timeline |
| Aegis Value Fund |
| Marsico Growth |
Aegis Value and Marsico Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegis Value and Marsico Growth
The main advantage of trading using opposite Aegis Value and Marsico Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegis Value position performs unexpectedly, Marsico 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 Marsico Growth will offset losses from the drop in Marsico Growth's long position.| Aegis Value vs. Blackrock Inflation Protected | Aegis Value vs. Goldman Sachs Inflation | Aegis Value vs. Arrow Managed Futures | Aegis Value vs. Deutsche Global Inflation |
| Marsico Growth vs. Marsico Focus Fund | Marsico Growth vs. Marsico International Opportunities | Marsico Growth vs. Marsico 21st Century | Marsico Growth vs. Selected American Shares |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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