Correlation Between Intrepid Endurance and Jacob Micro
Can any of the company-specific risk be diversified away by investing in both Intrepid Endurance and Jacob Micro 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 Intrepid Endurance and Jacob Micro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intrepid Endurance Fund and Jacob Micro Cap, you can compare the effects of market volatilities on Intrepid Endurance and Jacob Micro 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 Intrepid Endurance with a short position of Jacob Micro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intrepid Endurance and Jacob Micro.
Diversification Opportunities for Intrepid Endurance and Jacob Micro
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Intrepid and Jacob is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Intrepid Endurance Fund and Jacob Micro Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jacob Micro Cap and Intrepid Endurance 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 Intrepid Endurance Fund are associated (or correlated) with Jacob Micro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jacob Micro Cap has no effect on the direction of Intrepid Endurance i.e., Intrepid Endurance and Jacob Micro go up and down completely randomly.
Pair Corralation between Intrepid Endurance and Jacob Micro
Assuming the 90 days horizon Intrepid Endurance is expected to generate 2.16 times less return on investment than Jacob Micro. But when comparing it to its historical volatility, Intrepid Endurance Fund is 1.43 times less risky than Jacob Micro. It trades about 0.05 of its potential returns per unit of risk. Jacob Micro Cap is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,863 in Jacob Micro Cap on August 26, 2024 and sell it today you would earn a total of 519.00 from holding Jacob Micro Cap or generate 27.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intrepid Endurance Fund vs. Jacob Micro Cap
Performance |
| Timeline |
| Intrepid Endurance |
| Jacob Micro Cap |
Intrepid Endurance and Jacob Micro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intrepid Endurance and Jacob Micro
The main advantage of trading using opposite Intrepid Endurance and Jacob Micro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intrepid Endurance position performs unexpectedly, Jacob Micro 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 Jacob Micro will offset losses from the drop in Jacob Micro's long position.| Intrepid Endurance vs. Amg Yacktman Focused | Intrepid Endurance vs. Intrepid Capital Fund | Intrepid Endurance vs. Heartland Value Plus | Intrepid Endurance vs. Appleseed Fund Appleseed |
| Jacob Micro vs. Small Pany Growth | Jacob Micro vs. Jacob Internet Fund | Jacob Micro vs. Jacob Small Cap | Jacob Micro vs. Amer Beacon Ark |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |