Correlation Between Firsthand Alternative and Emerging Markets
Can any of the company-specific risk be diversified away by investing in both Firsthand Alternative and Emerging Markets 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 Firsthand Alternative and Emerging Markets into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Firsthand Alternative Energy and Emerging Markets Leaders, you can compare the effects of market volatilities on Firsthand Alternative and Emerging Markets 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 Firsthand Alternative with a short position of Emerging Markets. Check out your portfolio center. Please also check ongoing floating volatility patterns of Firsthand Alternative and Emerging Markets.
Diversification Opportunities for Firsthand Alternative and Emerging Markets
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Firsthand and Emerging is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Firsthand Alternative Energy and Emerging Markets Leaders in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emerging Markets Leaders and Firsthand Alternative 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 Firsthand Alternative Energy are associated (or correlated) with Emerging Markets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emerging Markets Leaders has no effect on the direction of Firsthand Alternative i.e., Firsthand Alternative and Emerging Markets go up and down completely randomly.
Pair Corralation between Firsthand Alternative and Emerging Markets
If you would invest 979.00 in Firsthand Alternative Energy on September 14, 2024 and sell it today you would earn a total of 32.00 from holding Firsthand Alternative Energy or generate 3.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Firsthand Alternative Energy vs. Emerging Markets Leaders
Performance |
| Timeline |
| Firsthand Alternative |
| Emerging Markets Leaders |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Firsthand Alternative and Emerging Markets Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Firsthand Alternative and Emerging Markets
The main advantage of trading using opposite Firsthand Alternative and Emerging Markets positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Firsthand Alternative position performs unexpectedly, Emerging Markets 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 Emerging Markets will offset losses from the drop in Emerging Markets' long position.| Firsthand Alternative vs. Berkshire Focus | Firsthand Alternative vs. Red Oak Technology | Firsthand Alternative vs. Jacob Internet Fund | Firsthand Alternative vs. Kinetics Internet Fund |
| Emerging Markets vs. Jennison Natural Resources | Emerging Markets vs. Calvert Global Energy | Emerging Markets vs. Energy Basic Materials | Emerging Markets vs. Firsthand Alternative Energy |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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