Correlation Between Boston Partners and Aegis Value
Can any of the company-specific risk be diversified away by investing in both Boston Partners and Aegis 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 Boston Partners and Aegis Value into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boston Partners Emerging and Aegis Value Fund, you can compare the effects of market volatilities on Boston Partners and Aegis 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 Boston Partners with a short position of Aegis Value. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boston Partners and Aegis Value.
Diversification Opportunities for Boston Partners and Aegis Value
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Boston and Aegis is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Boston Partners Emerging and Aegis Value Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aegis Value Fund and Boston Partners 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 Boston Partners Emerging are associated (or correlated) with Aegis Value. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aegis Value Fund has no effect on the direction of Boston Partners i.e., Boston Partners and Aegis Value go up and down completely randomly.
Pair Corralation between Boston Partners and Aegis Value
Assuming the 90 days horizon Boston Partners is expected to generate 4.2 times less return on investment than Aegis Value. But when comparing it to its historical volatility, Boston Partners Emerging is 1.4 times less risky than Aegis Value. It trades about 0.17 of its potential returns per unit of risk. Aegis Value Fund is currently generating about 0.52 of returns per unit of risk over similar time horizon. If you would invest 3,538 in Aegis Value Fund on October 22, 2024 and sell it today you would earn a total of 213.00 from holding Aegis Value Fund or generate 6.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Boston Partners Emerging vs. Aegis Value Fund
Performance |
| Timeline |
| Boston Partners Emerging |
| Aegis Value Fund |
Boston Partners and Aegis Value Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boston Partners and Aegis Value
The main advantage of trading using opposite Boston Partners and Aegis Value positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boston Partners position performs unexpectedly, Aegis 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 Aegis Value will offset losses from the drop in Aegis Value's long position.| Boston Partners vs. Blrc Sgy Mnp | Boston Partners vs. Old Westbury Municipal | Boston Partners vs. Alpine Ultra Short | Boston Partners vs. Vanguard Short Term Government |
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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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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