Correlation Between Aegis Value and Jacob Micro
Can any of the company-specific risk be diversified away by investing in both Aegis Value and Jacob Micro 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 Jacob Micro 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 Jacob Micro Cap, you can compare the effects of market volatilities on Aegis Value and Jacob Micro 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 Jacob Micro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegis Value and Jacob Micro.
Diversification Opportunities for Aegis Value and Jacob Micro
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Aegis and Jacob is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Aegis Value Fund and Jacob Micro Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jacob Micro Cap 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 Jacob Micro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jacob Micro Cap has no effect on the direction of Aegis Value i.e., Aegis Value and Jacob Micro go up and down completely randomly.
Pair Corralation between Aegis Value and Jacob Micro
Assuming the 90 days horizon Aegis Value is expected to generate 2.34 times less return on investment than Jacob Micro. But when comparing it to its historical volatility, Aegis Value Fund is 1.68 times less risky than Jacob Micro. It trades about 0.2 of its potential returns per unit of risk. Jacob Micro Cap is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 2,116 in Jacob Micro Cap on May 29, 2025 and sell it today you would earn a total of 636.00 from holding Jacob Micro Cap or generate 30.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aegis Value Fund vs. Jacob Micro Cap
Performance |
| Timeline |
| Aegis Value Fund |
| Jacob Micro Cap |
Aegis Value and Jacob Micro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegis Value and Jacob Micro
The main advantage of trading using opposite Aegis Value and Jacob Micro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegis Value position performs unexpectedly, Jacob Micro 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 Jacob Micro will offset losses from the drop in Jacob Micro's long position.| Aegis Value vs. Fidelity 500 Index | Aegis Value vs. Vanguard Small Cap Value | Aegis Value vs. Vanguard Total Stock | Aegis Value vs. Pimco Dynamic Income |
| Jacob Micro vs. Small Pany Growth | Jacob Micro vs. Jacob Internet Fund | Jacob Micro vs. Jacob Small Cap | Jacob Micro vs. Amer Beacon Ark |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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