Correlation Between Oberweis Micro-cap and Wasatch International
Can any of the company-specific risk be diversified away by investing in both Oberweis Micro-cap and Wasatch International 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 Wasatch International 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 Wasatch International Growth, you can compare the effects of market volatilities on Oberweis Micro-cap and Wasatch International 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 Wasatch International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oberweis Micro-cap and Wasatch International.
Diversification Opportunities for Oberweis Micro-cap and Wasatch International
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Oberweis and Wasatch is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Oberweis Micro Cap Fund and Wasatch International Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wasatch International 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 Wasatch International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wasatch International has no effect on the direction of Oberweis Micro-cap i.e., Oberweis Micro-cap and Wasatch International go up and down completely randomly.
Pair Corralation between Oberweis Micro-cap and Wasatch International
Assuming the 90 days horizon Oberweis Micro Cap Fund is expected to generate 2.08 times more return on investment than Wasatch International. However, Oberweis Micro-cap is 2.08 times more volatile than Wasatch International Growth. It trades about 0.34 of its potential returns per unit of risk. Wasatch International Growth is currently generating about 0.15 per unit of risk. If you would invest 4,459 in Oberweis Micro Cap Fund on September 3, 2024 and sell it today you would earn a total of 478.00 from holding Oberweis Micro Cap Fund or generate 10.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oberweis Micro Cap Fund vs. Wasatch International Growth
Performance |
| Timeline |
| Oberweis Micro Cap |
| Wasatch International |
Oberweis Micro-cap and Wasatch International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oberweis Micro-cap and Wasatch International
The main advantage of trading using opposite Oberweis Micro-cap and Wasatch International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oberweis Micro-cap position performs unexpectedly, Wasatch International 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 Wasatch International will offset losses from the drop in Wasatch International's long position.| Oberweis Micro-cap vs. Oberweis Emerging Growth | Oberweis Micro-cap vs. Oberweis Small Cap Opportunities | Oberweis Micro-cap vs. Ultra Small Pany Fund | Oberweis Micro-cap vs. Perritt Microcap Opportunities |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |