Small Cap Correlations

RCC Stock

USD 24.46 0.05 0.20%

The current 90-days correlation between Small Cap Premium and Ready Capital is 0.48 (i.e., Very weak diversification). The correlation of Small Cap is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.

Small Cap Correlation With Market

Average diversification

The correlation between Small Cap Premium and DJI is 0.13 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Small Cap Premium and DJI in the same portfolio, assuming nothing else is changed.

Build AI portfolio with Small Stock

Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Small Cap Premium. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in main economic indicators.

Moving against Small Stock

0.71	BHFAL	Brighthouse Financial	Pair Corr
0.36	EE	Excelerate Energy	Pair Corr
0.45	VNOM	Viper Energy Ut	Pair Corr
0.44	ANNAW	AleAnna, Warrant	Pair Corr

Related Correlations Analysis

	RSF	RMT	FFA	IGA	RCB
RSF		-0.63	-0.55	-0.49	0.12	RSF
RMT	-0.63		0.97	0.72	0.08	RMT
FFA	-0.55	0.97		0.73	0.07	FFA
IGA	-0.49	0.72	0.73		-0.46	IGA
RCB	0.12	0.08	0.07	-0.46		RCB
	RSF	RMT	FFA	IGA	RCB

Click cells to compare fundamentals

Check Volatility

Backtest Portfolio

Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

FFA	+ 0.97	RMT
IGA	+ 0.73	FFA
IGA	+ 0.72	RMT
RCB	+ 0.12	RSF
RCB	+ 0.08	RMT
RCB	+ 0.07	FFA

High negative correlations

RMT	- 0.63	RSF
FFA	- 0.55	RSF
IGA	- 0.49	RSF
RCB	- 0.46	IGA

Risk-Adjusted Indicators

There is a big difference between Small Stock performing well and Small Cap Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Small Cap's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
RSF	0.26	(0.02)	0.00	(0.39)	0.00	0.00	0.49	(0.62)	2.14
RMT	0.83	0.18	0.18	0.32	0.59	(1.04)	2.01	(1.41)	6.08
FFA	0.60	0.09	0.06	0.24	0.65	(0.67)	1.74	(1.37)	4.78
IGA	0.57	0.05	(0.04)	0.26	0.46	(0.73)	1.97	(1.00)	4.44
RCB	0.28	(0.01)	(0.24)	0.06	0.44	(0.28)	0.50	(0.62)	2.04

Small Cap Corporate Management

Dominique Mielle	Independent Director	Profile
Gilbert Nathan	Independent Director	Profile
Frank Filipps	Independent Director	Profile
Adam Zausmer	Chief Credit Officer	Profile
Julius Erving	Director	Profile

Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions

Feedback Blog

Made with optimal in San Francisco

2025 Macroaxis LLC