Correlation Between Aegis Value and Volumetric Fund

Can any of the company-specific risk be diversified away by investing in both Aegis Value and Volumetric Fund 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 Volumetric Fund 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 Volumetric Fund Volumetric, you can compare the effects of market volatilities on Aegis Value and Volumetric Fund 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 Volumetric Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegis Value and Volumetric Fund.

Diversification Opportunities for Aegis Value and Volumetric Fund

-0.5

Correlation Coefficient

Aegis Value  Volumetric Fund

Very good diversification

The 3 months correlation between Aegis and Volumetric is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Aegis Value Fund and Volumetric Fund Volumetric in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Volumetric Fund Volu 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 Volumetric Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Volumetric Fund Volu has no effect on the direction of Aegis Value i.e., Aegis Value and Volumetric Fund go up and down completely randomly.

Pair Corralation between Aegis Value and Volumetric Fund

Assuming the 90 days horizon Aegis Value Fund is expected to generate 1.63 times more return on investment than Volumetric Fund. However, Aegis Value is 1.63 times more volatile than Volumetric Fund Volumetric. It trades about 0.15 of its potential returns per unit of risk. Volumetric Fund Volumetric is currently generating about -0.12 per unit of risk. If you would invest  3,555  in Aegis Value Fund on December 30, 2024 and sell it today you would earn a total of  461.00  from holding Aegis Value Fund or generate 12.97% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Aegis Value Fund  vs.  Volumetric Fund Volumetric

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 11 (%) 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.

Volumetric Fund Volu

Risk-Adjusted Performance

Very Weak

Over the last 90 days Volumetric Fund Volumetric has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong primary indicators, Volumetric Fund 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 Volumetric Fund

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

The idea behind Aegis Value Fund and Volumetric Fund Volumetric 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.