Small Cap Correlations

Small Cap Correlation With Market

Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Small Cap Premium. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in main economic indicators.

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations    FFA + 0.89 RMT IGA + 0.67 RSF RCB + 0.54 RMT RCB + 0.38 FFA

High negative correlations    RCB - 0.81 IGA IGA - 0.61 RMT RCB - 0.47 RSF RMT - 0.35 RSF IGA - 0.34 FFA FFA - 0.11 RSF

Risk-Adjusted Indicators

There is a big difference between Small Stock performing well and Small Cap Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Small Cap's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.