Correlation Between Aegis Value and Wasatch Small
Can any of the company-specific risk be diversified away by investing in both Aegis Value and Wasatch 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 Wasatch 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 Wasatch Small Cap, you can compare the effects of market volatilities on Aegis Value and Wasatch 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 Wasatch Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegis Value and Wasatch Small.
Diversification Opportunities for Aegis Value and Wasatch Small
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aegis and Wasatch is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Aegis Value Fund and Wasatch Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wasatch 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 Wasatch Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wasatch Small Cap has no effect on the direction of Aegis Value i.e., Aegis Value and Wasatch Small go up and down completely randomly.
Pair Corralation between Aegis Value and Wasatch Small
Assuming the 90 days horizon Aegis Value Fund is expected to under-perform the Wasatch Small. But the mutual fund apears to be less risky and, when comparing its historical volatility, Aegis Value Fund is 1.06 times less risky than Wasatch Small. The mutual fund trades about -0.01 of its potential returns per unit of risk. The Wasatch Small Cap is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 4,411 in Wasatch Small Cap on September 12, 2024 and sell it today you would lose (5.00) from holding Wasatch Small Cap or give up 0.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aegis Value Fund vs. Wasatch Small Cap
Performance |
| Timeline |
| Aegis Value Fund |
| Wasatch Small Cap |
Aegis Value and Wasatch Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegis Value and Wasatch Small
The main advantage of trading using opposite Aegis Value and Wasatch Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegis Value position performs unexpectedly, Wasatch 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 Wasatch Small will offset losses from the drop in Wasatch 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 |
| Wasatch Small vs. Third Avenue Real | Wasatch Small vs. Aegis Value Fund | Wasatch Small vs. Litman Gregory Masters | Wasatch 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |