Correlation Between Aegis Value and Abr 75/25

Can any of the company-specific risk be diversified away by investing in both Aegis Value and Abr 75/25 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 Aegis Value and Abr 75/25 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Aegis Value Fund and Abr 7525 Volatility, you can compare the effects of market volatilities on Aegis Value and Abr 75/25 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 Aegis Value with a short position of Abr 75/25. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegis Value and Abr 75/25.

Diversification Opportunities for Aegis Value and Abr 75/25

-0.27

Correlation Coefficient

Aegis Value  Abr 75/25

Very good diversification

The 3 months correlation between Aegis and Abr is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Aegis Value Fund and Abr 7525 Volatility in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Abr 7525 Volatility and Aegis Value 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 Aegis Value Fund are associated (or correlated) with Abr 75/25. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Abr 7525 Volatility has no effect on the direction of Aegis Value i.e., Aegis Value and Abr 75/25 go up and down completely randomly.

Pair Corralation between Aegis Value and Abr 75/25

Assuming the 90 days horizon Aegis Value Fund is expected to generate 1.45 times more return on investment than Abr 75/25. However, Aegis Value is 1.45 times more volatile than Abr 7525 Volatility. It trades about 0.17 of its potential returns per unit of risk. Abr 7525 Volatility is currently generating about -0.08 per unit of risk. If you would invest  3,552  in Aegis Value Fund on December 27, 2024 and sell it today you would earn a total of  532.00  from holding Aegis Value Fund or generate 14.98% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.36%
Values	Daily Returns

Aegis Value Fund  vs.  Abr 7525 Volatility

Aegis Value Fund

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Aegis Value Fund are ranked lower than 13 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak essential indicators, Aegis Value showed solid returns over the last few months and may actually be approaching a breakup point.

Abr 7525 Volatility

Risk-Adjusted Performance

Very Weak

Over the last 90 days Abr 7525 Volatility has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward-looking indicators, Abr 75/25 is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Aegis Value and Abr 75/25

The main advantage of trading using opposite Aegis Value and Abr 75/25 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegis Value position performs unexpectedly, Abr 75/25 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 Abr 75/25 will offset losses from the drop in Abr 75/25's long position.

The idea behind Aegis Value Fund and Abr 7525 Volatility pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..