Correlation Between Coreshares Index and E Media
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By analyzing existing cross correlation between Coreshares Index Tracker and E Media Holdings, you can compare the effects of market volatilities on Coreshares Index and E Media 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 Coreshares Index with a short position of E Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coreshares Index and E Media.
Diversification Opportunities for Coreshares Index and E Media
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Coreshares and EMH is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Coreshares Index Tracker and E Media Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on E Media Holdings and Coreshares Index 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 Coreshares Index Tracker are associated (or correlated) with E Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of E Media Holdings has no effect on the direction of Coreshares Index i.e., Coreshares Index and E Media go up and down completely randomly.
Pair Corralation between Coreshares Index and E Media
Assuming the 90 days trading horizon Coreshares Index is expected to generate 1.75 times less return on investment than E Media. But when comparing it to its historical volatility, Coreshares Index Tracker is 3.5 times less risky than E Media. It trades about 0.03 of its potential returns per unit of risk. E Media Holdings is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 34,989 in E Media Holdings on August 31, 2024 and sell it today you would lose (589.00) from holding E Media Holdings or give up 1.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.57% |
| Values | Daily Returns |
Coreshares Index Tracker vs. E Media Holdings
Performance |
| Timeline |
| Coreshares Index Tracker |
| E Media Holdings |
Coreshares Index and E Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coreshares Index and E Media
The main advantage of trading using opposite Coreshares Index and E Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coreshares Index position performs unexpectedly, E Media 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 E Media will offset losses from the drop in E Media's long position.| Coreshares Index vs. Europa Metals | Coreshares Index vs. JSE Limited | Coreshares Index vs. British American Tobacco | Coreshares Index vs. Kap Industrial Holdings |
| E Media vs. CA Sales Holdings | E Media vs. Allied Electronics | E Media vs. Zeder Investments | E Media vs. Afine Investments |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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