Correlation Between Intal High and Emerging Markets
Can any of the company-specific risk be diversified away by investing in both Intal High 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 Intal High and Emerging Markets into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intal High Relative and Emerging Markets Small, you can compare the effects of market volatilities on Intal High 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 Intal High with a short position of Emerging Markets. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intal High and Emerging Markets.
Diversification Opportunities for Intal High and Emerging Markets
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Intal and Emerging is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Intal High Relative and Emerging Markets Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emerging Markets Small and Intal High 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 Intal High Relative 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 Small has no effect on the direction of Intal High i.e., Intal High and Emerging Markets go up and down completely randomly.
Pair Corralation between Intal High and Emerging Markets
Assuming the 90 days horizon Intal High Relative is expected to generate 0.79 times more return on investment than Emerging Markets. However, Intal High Relative is 1.26 times less risky than Emerging Markets. It trades about 0.39 of its potential returns per unit of risk. Emerging Markets Small is currently generating about -0.06 per unit of risk. If you would invest 1,247 in Intal High Relative on November 1, 2024 and sell it today you would earn a total of 66.00 from holding Intal High Relative or generate 5.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intal High Relative vs. Emerging Markets Small
Performance |
| Timeline |
| Intal High Relative |
| Emerging Markets Small |
Intal High and Emerging Markets Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intal High and Emerging Markets
The main advantage of trading using opposite Intal High and Emerging Markets positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intal High 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.| Intal High vs. Nexpoint Real Estate | Intal High vs. Forum Real Estate | Intal High vs. Real Estate Fund | Intal High vs. Texton Property |
| Emerging Markets vs. Neuberger Berman Real | Emerging Markets vs. Sa Real Estate | Emerging Markets vs. Nexpoint Real Estate | Emerging Markets vs. Prudential Real Estate |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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