Correlation Between Oberweis China and Oberweis Funds
Can any of the company-specific risk be diversified away by investing in both Oberweis China and Oberweis Funds 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 China and Oberweis Funds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oberweis China Opportunities and Oberweis Funds , you can compare the effects of market volatilities on Oberweis China and Oberweis Funds 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 China with a short position of Oberweis Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oberweis China and Oberweis Funds.
Diversification Opportunities for Oberweis China and Oberweis Funds
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Oberweis and Oberweis is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Oberweis China Opportunities and Oberweis Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oberweis Funds and Oberweis China 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 China Opportunities are associated (or correlated) with Oberweis Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oberweis Funds has no effect on the direction of Oberweis China i.e., Oberweis China and Oberweis Funds go up and down completely randomly.
Pair Corralation between Oberweis China and Oberweis Funds
Assuming the 90 days horizon Oberweis China Opportunities is expected to generate 2.26 times more return on investment than Oberweis Funds. However, Oberweis China is 2.26 times more volatile than Oberweis Funds . It trades about 0.12 of its potential returns per unit of risk. Oberweis Funds is currently generating about 0.17 per unit of risk. If you would invest 700.00 in Oberweis China Opportunities on December 1, 2024 and sell it today you would earn a total of 92.00 from holding Oberweis China Opportunities or generate 13.14% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Oberweis China Opportunities vs. Oberweis Funds
Performance |
Timeline |
Oberweis China Oppor |
Oberweis Funds |
Oberweis China and Oberweis Funds Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Oberweis China and Oberweis Funds
The main advantage of trading using opposite Oberweis China and Oberweis Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oberweis China position performs unexpectedly, Oberweis Funds 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 Funds will offset losses from the drop in Oberweis Funds' long position.Oberweis China vs. Tiaa Cref Inflation Link | Oberweis China vs. Inflation Linked Fixed Income | Oberweis China vs. Tiaa Cref Inflation Linked Bond | Oberweis China vs. Ab Bond Inflation |
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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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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