Correlation Between Intrepid Capital and Moderately Aggressive

Can any of the company-specific risk be diversified away by investing in both Intrepid Capital and Moderately Aggressive 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 Intrepid Capital and Moderately Aggressive into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for Intrepid Capital and Moderately Aggressive

0.58

Correlation Coefficient

Intrepid Capital  Moderately Aggressive

Very weak diversification

The 3 months correlation between Intrepid and Moderately is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Intrepid Capital Fund and Moderately Aggressive Balanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Moderately Aggressive and Intrepid Capital 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 Intrepid Capital Fund are associated (or correlated) with Moderately Aggressive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Moderately Aggressive has no effect on the direction of Intrepid Capital i.e., Intrepid Capital and Moderately Aggressive go up and down completely randomly.

Pair Corralation between Intrepid Capital and Moderately Aggressive

Assuming the 90 days horizon Intrepid Capital is expected to generate 1.05 times less return on investment than Moderately Aggressive. In addition to that, Intrepid Capital is 1.04 times more volatile than Moderately Aggressive Balanced. It trades about 0.18 of its total potential returns per unit of risk. Moderately Aggressive Balanced is currently generating about 0.2 per unit of volatility. If you would invest  1,207  in Moderately Aggressive Balanced on May 17, 2025 and sell it today you would earn a total of  70.00  from holding Moderately Aggressive Balanced or generate 5.8% return on investment over 90 days.

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

Intrepid Capital Fund  vs.  Moderately Aggressive Balanced

Intrepid Capital

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Intrepid Capital Fund are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Intrepid Capital is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Moderately Aggressive

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Moderately Aggressive Balanced are ranked lower than 15 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Moderately Aggressive is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Intrepid Capital and Moderately Aggressive

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

The idea behind Intrepid Capital Fund and Moderately Aggressive Balanced 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.

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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.