Correlation Between Volumetric Fund and Aegis Value

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

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

Diversification Opportunities for Volumetric Fund and Aegis Value

0.68

Correlation Coefficient

Volumetric Fund  Aegis Value

Poor diversification

The 3 months correlation between Volumetric and Aegis is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Volumetric Fund Volumetric and Aegis Value Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aegis Value Fund and Volumetric Fund 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 Volumetric Fund Volumetric are associated (or correlated) with Aegis Value. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aegis Value Fund has no effect on the direction of Volumetric Fund i.e., Volumetric Fund and Aegis Value go up and down completely randomly.

Pair Corralation between Volumetric Fund and Aegis Value

Assuming the 90 days horizon Volumetric Fund Volumetric is expected to generate 0.73 times more return on investment than Aegis Value. However, Volumetric Fund Volumetric is 1.37 times less risky than Aegis Value. It trades about 0.2 of its potential returns per unit of risk. Aegis Value Fund is currently generating about 0.12 per unit of risk. If you would invest  2,447  in Volumetric Fund Volumetric on September 2, 2024 and sell it today you would earn a total of  244.00  from holding Volumetric Fund Volumetric or generate 9.97% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Volumetric Fund Volumetric  vs.  Aegis Value Fund

Volumetric Fund Volu

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Volumetric Fund Volumetric are ranked lower than 15 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak primary indicators, Volumetric Fund may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Aegis Value Fund

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Aegis Value Fund are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak essential indicators, Aegis Value may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Volumetric Fund and Aegis Value

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

The idea behind Volumetric Fund Volumetric and Aegis Value Fund 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.