Correlation Between Avantis Emerging and Shelton Emerging
Can any of the company-specific risk be diversified away by investing in both Avantis Emerging and Shelton 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 Avantis Emerging and Shelton Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Avantis Emerging Markets and Shelton Emerging Markets, you can compare the effects of market volatilities on Avantis Emerging and Shelton 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 Avantis Emerging with a short position of Shelton Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Avantis Emerging and Shelton Emerging.
Diversification Opportunities for Avantis Emerging and Shelton Emerging
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Avantis and Shelton is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Avantis Emerging Markets and Shelton Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shelton Emerging Markets and Avantis Emerging 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 Avantis Emerging Markets are associated (or correlated) with Shelton Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shelton Emerging Markets has no effect on the direction of Avantis Emerging i.e., Avantis Emerging and Shelton Emerging go up and down completely randomly.
Pair Corralation between Avantis Emerging and Shelton Emerging
Assuming the 90 days horizon Avantis Emerging Markets is expected to generate 0.9 times more return on investment than Shelton Emerging. However, Avantis Emerging Markets is 1.11 times less risky than Shelton Emerging. It trades about 0.07 of its potential returns per unit of risk. Shelton Emerging Markets is currently generating about 0.03 per unit of risk. If you would invest 1,052 in Avantis Emerging Markets on September 2, 2024 and sell it today you would earn a total of 155.00 from holding Avantis Emerging Markets or generate 14.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Avantis Emerging Markets vs. Shelton Emerging Markets
Performance |
| Timeline |
| Avantis Emerging Markets |
| Shelton Emerging Markets |
Avantis Emerging and Shelton Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Avantis Emerging and Shelton Emerging
The main advantage of trading using opposite Avantis Emerging and Shelton Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Avantis Emerging position performs unexpectedly, Shelton 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 Shelton Emerging will offset losses from the drop in Shelton Emerging's long position.| Avantis Emerging vs. Shelton Emerging Markets | Avantis Emerging vs. Pnc Emerging Markets | Avantis Emerging vs. Barings Emerging Markets | Avantis Emerging vs. Siit Emerging Markets |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |