Correlation Between Royce Micro and Integrity Dividend

Can any of the company-specific risk be diversified away by investing in both Royce Micro and Integrity Dividend 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 Royce Micro and Integrity Dividend into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Royce Micro Cap and Integrity Dividend Harvest, you can compare the effects of market volatilities on Royce Micro and Integrity Dividend 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 Royce Micro with a short position of Integrity Dividend. Check out your portfolio center. Please also check ongoing floating volatility patterns of Royce Micro and Integrity Dividend.

Diversification Opportunities for Royce Micro and Integrity Dividend

0.19

Correlation Coefficient

Royce Micro  Integrity Dividend

Average diversification

The 3 months correlation between Royce and Integrity is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Royce Micro Cap and Integrity Dividend Harvest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integrity Dividend and Royce Micro 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 Royce Micro Cap are associated (or correlated) with Integrity Dividend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integrity Dividend has no effect on the direction of Royce Micro i.e., Royce Micro and Integrity Dividend go up and down completely randomly.

Pair Corralation between Royce Micro and Integrity Dividend

Considering the 90-day investment horizon Royce Micro is expected to generate 1.2 times less return on investment than Integrity Dividend. In addition to that, Royce Micro is 2.2 times more volatile than Integrity Dividend Harvest. It trades about 0.06 of its total potential returns per unit of risk. Integrity Dividend Harvest is currently generating about 0.15 per unit of volatility. If you would invest  1,991  in Integrity Dividend Harvest on September 8, 2025 and sell it today you would earn a total of  118.00  from holding Integrity Dividend Harvest or generate 5.93% return on investment over 90 days.

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

Royce Micro Cap  vs.  Integrity Dividend Harvest

Royce Micro Cap

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Royce Micro Cap are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable primary indicators, Royce Micro is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Integrity Dividend

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Integrity Dividend Harvest are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Integrity Dividend is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Royce Micro and Integrity Dividend

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

The idea behind Royce Micro Cap and Integrity Dividend Harvest 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.