Correlation Between Small-cap Value and Access Flex

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

By analyzing existing cross correlation between Small Cap Value Profund and Access Flex High, you can compare the effects of market volatilities on Small-cap Value and Access Flex 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-cap Value with a short position of Access Flex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Small-cap Value and Access Flex.

Diversification Opportunities for Small-cap Value and Access Flex

0.87

Correlation Coefficient

Small-cap Value  Access Flex

Very poor diversification

The 3 months correlation between Small-cap and Access is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Small Cap Value Profund and Access Flex High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Access Flex High and Small-cap Value 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 Cap Value Profund are associated (or correlated) with Access Flex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Access Flex High has no effect on the direction of Small-cap Value i.e., Small-cap Value and Access Flex go up and down completely randomly.

Pair Corralation between Small-cap Value and Access Flex

Assuming the 90 days horizon Small Cap Value Profund is expected to generate 6.15 times more return on investment than Access Flex. However, Small-cap Value is 6.15 times more volatile than Access Flex High. It trades about 0.07 of its potential returns per unit of risk. Access Flex High is currently generating about 0.11 per unit of risk. If you would invest  8,238  in Small Cap Value Profund on July 10, 2025 and sell it today you would earn a total of  385.00  from holding Small Cap Value Profund or generate 4.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	98.44%
Values	Daily Returns

Small Cap Value Profund  vs.  Access Flex High

Small Cap Value

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Small Cap Value Profund are ranked lower than 5 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Small-cap Value is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Access Flex High

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Access Flex High are ranked lower than 8 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Access Flex is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Small-cap Value and Access Flex

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

The idea behind Small Cap Value Profund and Access Flex High 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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.