Correlation Between Oberweis Funds and Oberweis China
Can any of the company-specific risk be diversified away by investing in both Oberweis Funds and Oberweis China 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 Funds and Oberweis China into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oberweis Funds and Oberweis China Opportunities, you can compare the effects of market volatilities on Oberweis Funds and Oberweis China 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 Funds with a short position of Oberweis China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oberweis Funds and Oberweis China.
Diversification Opportunities for Oberweis Funds and Oberweis China
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Oberweis and Oberweis is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Oberweis Funds and Oberweis China Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oberweis China Oppor and Oberweis Funds 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 Funds are associated (or correlated) with Oberweis China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oberweis China Oppor has no effect on the direction of Oberweis Funds i.e., Oberweis Funds and Oberweis China go up and down completely randomly.
Pair Corralation between Oberweis Funds and Oberweis China
Assuming the 90 days horizon Oberweis Funds is expected to generate 0.49 times more return on investment than Oberweis China. However, Oberweis Funds is 2.05 times less risky than Oberweis China. It trades about -0.09 of its potential returns per unit of risk. Oberweis China Opportunities is currently generating about -0.22 per unit of risk. If you would invest 1,006 in Oberweis Funds on August 26, 2024 and sell it today you would lose (17.00) from holding Oberweis Funds or give up 1.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oberweis Funds vs. Oberweis China Opportunities
Performance |
| Timeline |
| Oberweis Funds |
| Oberweis China Oppor |
Oberweis Funds and Oberweis China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oberweis Funds and Oberweis China
The main advantage of trading using opposite Oberweis Funds and Oberweis China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oberweis Funds position performs unexpectedly, Oberweis China 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 China will offset losses from the drop in Oberweis China's long position.| Oberweis Funds vs. Oberweis China Opportunities | Oberweis Funds vs. Oberweis Emerging Growth | Oberweis Funds vs. Oberweis Emerging Markets | Oberweis Funds vs. Oberweis Emerging Growth |
| Oberweis China vs. Matthews China Fund | Oberweis China vs. T Rowe Price | Oberweis China vs. Matthews India Fund | Oberweis China vs. Guinness Atkinson China |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |