Correlation Between Fs Managed and Oberweis Small
Can any of the company-specific risk be diversified away by investing in both Fs Managed and Oberweis 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 Fs Managed and Oberweis Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fs Managed Futures and Oberweis Small Cap Opportunities, you can compare the effects of market volatilities on Fs Managed and Oberweis 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 Fs Managed with a short position of Oberweis Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fs Managed and Oberweis Small.
Diversification Opportunities for Fs Managed and Oberweis Small
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FMFFX and Oberweis is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Fs Managed Futures and Oberweis Small Cap Opportuniti in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oberweis Small Cap and Fs Managed 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 Fs Managed Futures are associated (or correlated) with Oberweis Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oberweis Small Cap has no effect on the direction of Fs Managed i.e., Fs Managed and Oberweis Small go up and down completely randomly.
Pair Corralation between Fs Managed and Oberweis Small
Assuming the 90 days horizon Fs Managed Futures is expected to under-perform the Oberweis Small. But the mutual fund apears to be less risky and, when comparing its historical volatility, Fs Managed Futures is 1.73 times less risky than Oberweis Small. The mutual fund trades about -0.02 of its potential returns per unit of risk. The Oberweis Small Cap Opportunities is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 2,136 in Oberweis Small Cap Opportunities on August 31, 2024 and sell it today you would earn a total of 593.00 from holding Oberweis Small Cap Opportunities or generate 27.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 92.25% |
| Values | Daily Returns |
Fs Managed Futures vs. Oberweis Small Cap Opportuniti
Performance |
| Timeline |
| Fs Managed Futures |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
| Oberweis Small Cap |
Fs Managed and Oberweis Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fs Managed and Oberweis Small
The main advantage of trading using opposite Fs Managed and Oberweis Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fs Managed position performs unexpectedly, Oberweis 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 Oberweis Small will offset losses from the drop in Oberweis Small's long position.| Fs Managed vs. Prudential Jennison International | Fs Managed vs. Fidelity New Markets | Fs Managed vs. Ohio Variable College |
| Oberweis Small vs. Oberweis Micro Cap Fund | Oberweis Small vs. Oberweis Emerging Growth | Oberweis Small vs. Oberweis International Opportunities | Oberweis Small vs. Needham Aggressive Growth |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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