Correlation Between Oberweis Micro-cap and Needham Aggressive
Can any of the company-specific risk be diversified away by investing in both Oberweis Micro-cap and Needham Aggressive 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 Oberweis Micro-cap and Needham Aggressive into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oberweis Micro Cap Fund and Needham Aggressive Growth, you can compare the effects of market volatilities on Oberweis Micro-cap and Needham Aggressive 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 Oberweis Micro-cap with a short position of Needham Aggressive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oberweis Micro-cap and Needham Aggressive.
Diversification Opportunities for Oberweis Micro-cap and Needham Aggressive
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Oberweis and Needham is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Oberweis Micro Cap Fund and Needham Aggressive Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Needham Aggressive Growth and Oberweis Micro-cap 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 Oberweis Micro Cap Fund are associated (or correlated) with Needham Aggressive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Needham Aggressive Growth has no effect on the direction of Oberweis Micro-cap i.e., Oberweis Micro-cap and Needham Aggressive go up and down completely randomly.
Pair Corralation between Oberweis Micro-cap and Needham Aggressive
If you would invest 4,383 in Needham Aggressive Growth on November 2, 2024 and sell it today you would earn a total of 421.00 from holding Needham Aggressive Growth or generate 9.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Oberweis Micro Cap Fund vs. Needham Aggressive Growth
Performance |
| Timeline |
| Oberweis Micro Cap |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
| Needham Aggressive Growth |
Oberweis Micro-cap and Needham Aggressive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oberweis Micro-cap and Needham Aggressive
The main advantage of trading using opposite Oberweis Micro-cap and Needham Aggressive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oberweis Micro-cap position performs unexpectedly, Needham Aggressive 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 Needham Aggressive will offset losses from the drop in Needham Aggressive's long position.| Oberweis Micro-cap vs. Oberweis Small Cap Opportunities | Oberweis Micro-cap vs. Perritt Microcap Opportunities | Oberweis Micro-cap vs. Kinetics Small Cap |
| Needham Aggressive vs. Needham Small Cap | Needham Aggressive vs. Needham Growth Fund | Needham Aggressive vs. Needham Aggressive Growth | Needham Aggressive vs. Oberweis Micro Cap 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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