Correlation Between Oberweis Micro-cap and Eip Growth
Can any of the company-specific risk be diversified away by investing in both Oberweis Micro-cap and Eip Growth 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 Eip Growth 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 Eip Growth And, you can compare the effects of market volatilities on Oberweis Micro-cap and Eip Growth 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 Eip Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oberweis Micro-cap and Eip Growth.
Diversification Opportunities for Oberweis Micro-cap and Eip Growth
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Oberweis and Eip is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Oberweis Micro Cap Fund and Eip Growth And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eip Growth And 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 Eip Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eip Growth And has no effect on the direction of Oberweis Micro-cap i.e., Oberweis Micro-cap and Eip Growth go up and down completely randomly.
Pair Corralation between Oberweis Micro-cap and Eip Growth
Assuming the 90 days horizon Oberweis Micro Cap Fund is expected to generate 1.73 times more return on investment than Eip Growth. However, Oberweis Micro-cap is 1.73 times more volatile than Eip Growth And. It trades about 0.07 of its potential returns per unit of risk. Eip Growth And is currently generating about 0.1 per unit of risk. If you would invest 3,310 in Oberweis Micro Cap Fund on August 30, 2024 and sell it today you would earn a total of 1,717 from holding Oberweis Micro Cap Fund or generate 51.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oberweis Micro Cap Fund vs. Eip Growth And
Performance |
| Timeline |
| Oberweis Micro Cap |
| Eip Growth And |
Oberweis Micro-cap and Eip Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oberweis Micro-cap and Eip Growth
The main advantage of trading using opposite Oberweis Micro-cap and Eip Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oberweis Micro-cap position performs unexpectedly, Eip Growth 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 Eip Growth will offset losses from the drop in Eip Growth's long position.| Oberweis Micro-cap vs. Eip Growth And | Oberweis Micro-cap vs. Small Midcap Dividend Income | Oberweis Micro-cap vs. Growth Fund Of | Oberweis Micro-cap vs. Qs Growth Fund |
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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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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