Correlation Between Us Small and Jacob Micro
Can any of the company-specific risk be diversified away by investing in both Us Small 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 Us Small and Jacob Micro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Us Small Cap and Jacob Micro Cap, you can compare the effects of market volatilities on Us Small 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 Us Small with a short position of Jacob Micro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Us Small and Jacob Micro.
Diversification Opportunities for Us Small and Jacob Micro
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between DFSTX and Jacob is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Us Small Cap 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 Us Small 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 Us Small Cap 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 Us Small i.e., Us Small and Jacob Micro go up and down completely randomly.
Pair Corralation between Us Small and Jacob Micro
Assuming the 90 days horizon Us Small Cap is expected to generate 0.99 times more return on investment than Jacob Micro. However, Us Small Cap is 1.01 times less risky than Jacob Micro. It trades about 0.06 of its potential returns per unit of risk. Jacob Micro Cap is currently generating about 0.05 per unit of risk. If you would invest 4,498 in Us Small Cap on March 30, 2025 and sell it today you would earn a total of 305.00 from holding Us Small Cap or generate 6.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Us Small Cap vs. Jacob Micro Cap
Performance |
| Timeline |
| Us Small Cap |
| Jacob Micro Cap |
Us Small and Jacob Micro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Us Small and Jacob Micro
The main advantage of trading using opposite Us Small and Jacob Micro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Us Small 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.| Us Small vs. First Eagle Gold | Us Small vs. Gabelli Gold Fund | Us Small vs. Sprott Gold Equity | Us Small vs. International Investors Gold |
| 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |