Correlation Between Small Pany and Oberweis Emerging

Can any of the company-specific risk be diversified away by investing in both Small Pany and Oberweis Emerging 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 Small Pany and Oberweis Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Small Pany Value and Oberweis Emerging Growth, you can compare the effects of market volatilities on Small Pany and Oberweis Emerging 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 Small Pany with a short position of Oberweis Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Small Pany and Oberweis Emerging.

Diversification Opportunities for Small Pany and Oberweis Emerging

0.68

Correlation Coefficient

Small Pany  Oberweis Emerging

Poor diversification

The 3 months correlation between Small and Oberweis is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Small Pany Value and Oberweis Emerging Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oberweis Emerging Growth and Small Pany 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 Small Pany Value are associated (or correlated) with Oberweis Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oberweis Emerging Growth has no effect on the direction of Small Pany i.e., Small Pany and Oberweis Emerging go up and down completely randomly.

Pair Corralation between Small Pany and Oberweis Emerging

Assuming the 90 days horizon Small Pany is expected to generate 2.22 times less return on investment than Oberweis Emerging. In addition to that, Small Pany is 1.31 times more volatile than Oberweis Emerging Growth. It trades about 0.1 of its total potential returns per unit of risk. Oberweis Emerging Growth is currently generating about 0.29 per unit of volatility. If you would invest  2,887  in Oberweis Emerging Growth on May 3, 2025 and sell it today you would earn a total of  435.00  from holding Oberweis Emerging Growth or generate 15.07% return on investment over 90 days.

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

Small Pany Value  vs.  Oberweis Emerging Growth

Small Pany Value

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Small Pany Value are ranked lower than 7 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Small Pany may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Oberweis Emerging Growth

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Oberweis Emerging Growth are ranked lower than 23 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Oberweis Emerging showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Small Pany and Oberweis Emerging

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

The idea behind Small Pany Value and Oberweis Emerging Growth 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 Stocks Directory module to find actively traded stocks across global markets.