Correlation Between Us Small and Auer Growth
Can any of the company-specific risk be diversified away by investing in both Us Small and Auer 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 Us Small and Auer Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Us Small Cap and Auer Growth Fund, you can compare the effects of market volatilities on Us Small and Auer 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 Us Small with a short position of Auer Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Us Small and Auer Growth.
Diversification Opportunities for Us Small and Auer Growth
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between DFSVX and Auer is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Us Small Cap and Auer Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Auer Growth Fund and Us Small 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 Us Small Cap are associated (or correlated) with Auer Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Auer Growth Fund has no effect on the direction of Us Small i.e., Us Small and Auer Growth go up and down completely randomly.
Pair Corralation between Us Small and Auer Growth
Assuming the 90 days horizon Us Small Cap is expected to generate 1.77 times more return on investment than Auer Growth. However, Us Small is 1.77 times more volatile than Auer Growth Fund. It trades about 0.2 of its potential returns per unit of risk. Auer Growth Fund is currently generating about 0.1 per unit of risk. If you would invest 4,803 in Us Small Cap on August 24, 2024 and sell it today you would earn a total of 365.00 from holding Us Small Cap or generate 7.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Us Small Cap vs. Auer Growth Fund
Performance |
| Timeline |
| Us Small Cap |
| Auer Growth Fund |
Us Small and Auer Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Us Small and Auer Growth
The main advantage of trading using opposite Us Small and Auer Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Us Small position performs unexpectedly, Auer 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 Auer Growth will offset losses from the drop in Auer Growth's long position.| Us Small vs. Lebenthal Lisanti Small | Us Small vs. Hodges Small Cap | Us Small vs. Oberweis Small Cap Opportunities | Us Small vs. Aegis Value Fund |
| Auer Growth vs. Lebenthal Lisanti Small | Auer Growth vs. Hodges Small Cap | Auer Growth vs. Oberweis Small Cap Opportunities | Auer Growth vs. Aegis Value 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Stocks Directory Find actively traded stocks across global markets |