Correlation Between Us Small and Aegis Value
Can any of the company-specific risk be diversified away by investing in both Us Small 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 Us Small and Aegis Value 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 Aegis Value Fund, you can compare the effects of market volatilities on Us Small 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 Us Small with a short position of Aegis Value. Check out your portfolio center. Please also check ongoing floating volatility patterns of Us Small and Aegis Value.
Diversification Opportunities for Us Small and Aegis Value
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between DFSVX and Aegis is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Us Small Cap 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 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 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 Us Small i.e., Us Small and Aegis Value go up and down completely randomly.
Pair Corralation between Us Small and Aegis Value
Assuming the 90 days horizon Us Small Cap is expected to generate 1.58 times more return on investment than Aegis Value. However, Us Small is 1.58 times more volatile than Aegis Value Fund. It trades about 0.27 of its potential returns per unit of risk. Aegis Value Fund is currently generating about 0.08 per unit of risk. If you would invest 4,802 in Us Small Cap on September 4, 2024 and sell it today you would earn a total of 497.00 from holding Us Small Cap or generate 10.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Us Small Cap vs. Aegis Value Fund
Performance |
| Timeline |
| Us Small Cap |
| Aegis Value Fund |
Us Small and Aegis Value Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Us Small and Aegis Value
The main advantage of trading using opposite Us Small and Aegis Value positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Us Small 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.| Us Small vs. Us Micro Cap | Us Small vs. Dfa International Small | Us Small vs. Us Large Cap | Us Small vs. International Small Pany |
| Aegis Value vs. T Rowe Price | Aegis Value vs. Rbb Fund | Aegis Value vs. Artisan Thematic Fund | Aegis Value vs. Balanced Fund Investor |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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