Correlation Between Undiscovered Managers and Hodges Small

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

By analyzing existing cross correlation between Undiscovered Managers Behavioral and Hodges Small Intrinsic, you can compare the effects of market volatilities on Undiscovered Managers and Hodges Small 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 Undiscovered Managers with a short position of Hodges Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Undiscovered Managers and Hodges Small.

Diversification Opportunities for Undiscovered Managers and Hodges Small

0.0

Correlation Coefficient

Undiscovered Managers  Hodges Small

Pay attention - limited upside

The 3 months correlation between Undiscovered and Hodges is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Undiscovered Managers Behavior and Hodges Small Intrinsic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hodges Small Intrinsic and Undiscovered Managers 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 Undiscovered Managers Behavioral are associated (or correlated) with Hodges Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hodges Small Intrinsic has no effect on the direction of Undiscovered Managers i.e., Undiscovered Managers and Hodges Small go up and down completely randomly.

Pair Corralation between Undiscovered Managers and Hodges Small

If you would invest  6,848  in Undiscovered Managers Behavioral on May 4, 2025 and sell it today you would earn a total of  355.00  from holding Undiscovered Managers Behavioral or generate 5.18% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Undiscovered Managers Behavior  vs.  Hodges Small Intrinsic

Undiscovered Managers

Risk-Adjusted Performance

OK

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

Hodges Small Intrinsic

Risk-Adjusted Performance

OK

Over the last 90 days Hodges Small Intrinsic has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward indicators, Hodges Small is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Undiscovered Managers and Hodges Small

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

The idea behind Undiscovered Managers Behavioral and Hodges Small Intrinsic 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.