Correlation Between Jacob Micro and Osterweis Emerging
Can any of the company-specific risk be diversified away by investing in both Jacob Micro and Osterweis Emerging 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 Jacob Micro and Osterweis Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jacob Micro Cap and Osterweis Emerging Opportunity, you can compare the effects of market volatilities on Jacob Micro and Osterweis Emerging 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 Jacob Micro with a short position of Osterweis Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacob Micro and Osterweis Emerging.
Diversification Opportunities for Jacob Micro and Osterweis Emerging
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jacob and Osterweis is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Jacob Micro Cap and Osterweis Emerging Opportunity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Osterweis Emerging and Jacob Micro 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 Jacob Micro Cap are associated (or correlated) with Osterweis Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Osterweis Emerging has no effect on the direction of Jacob Micro i.e., Jacob Micro and Osterweis Emerging go up and down completely randomly.
Pair Corralation between Jacob Micro and Osterweis Emerging
Assuming the 90 days horizon Jacob Micro is expected to generate 2.07 times less return on investment than Osterweis Emerging. In addition to that, Jacob Micro is 1.17 times more volatile than Osterweis Emerging Opportunity. It trades about 0.03 of its total potential returns per unit of risk. Osterweis Emerging Opportunity is currently generating about 0.08 per unit of volatility. If you would invest 1,203 in Osterweis Emerging Opportunity on September 3, 2024 and sell it today you would earn a total of 689.00 from holding Osterweis Emerging Opportunity or generate 57.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jacob Micro Cap vs. Osterweis Emerging Opportunity
Performance |
| Timeline |
| Jacob Micro Cap |
| Osterweis Emerging |
Jacob Micro and Osterweis Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacob Micro and Osterweis Emerging
The main advantage of trading using opposite Jacob Micro and Osterweis Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacob Micro position performs unexpectedly, Osterweis Emerging 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 Osterweis Emerging will offset losses from the drop in Osterweis Emerging's long position.| Jacob Micro vs. Small Pany Growth | Jacob Micro vs. Jacob Internet Fund | Jacob Micro vs. Jacob Small Cap | Jacob Micro vs. Amer Beacon Ark |
| Osterweis Emerging vs. Sterling Capital Short | Osterweis Emerging vs. Rbc Short Duration | Osterweis Emerging vs. Goldman Sachs Short | Osterweis Emerging vs. Angel Oak Ultrashort |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |