Correlation Between Listed Funds and Martin Currie
Can any of the company-specific risk be diversified away by investing in both Listed Funds and Martin Currie 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 Listed Funds and Martin Currie into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Listed Funds Trust and Martin Currie Sustainable, you can compare the effects of market volatilities on Listed Funds and Martin Currie 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 Listed Funds with a short position of Martin Currie. Check out your portfolio center. Please also check ongoing floating volatility patterns of Listed Funds and Martin Currie.
Diversification Opportunities for Listed Funds and Martin Currie
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Listed and Martin is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Listed Funds Trust and Martin Currie Sustainable in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Martin Currie Sustainable and Listed Funds 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 Listed Funds Trust are associated (or correlated) with Martin Currie. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Martin Currie Sustainable has no effect on the direction of Listed Funds i.e., Listed Funds and Martin Currie go up and down completely randomly.
Pair Corralation between Listed Funds and Martin Currie
Given the investment horizon of 90 days Listed Funds Trust is expected to generate 0.49 times more return on investment than Martin Currie. However, Listed Funds Trust is 2.06 times less risky than Martin Currie. It trades about 0.5 of its potential returns per unit of risk. Martin Currie Sustainable is currently generating about -0.17 per unit of risk. If you would invest 3,239 in Listed Funds Trust on September 3, 2024 and sell it today you would earn a total of 179.00 from holding Listed Funds Trust or generate 5.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Listed Funds Trust vs. Martin Currie Sustainable
Performance |
| Timeline |
| Listed Funds Trust |
| Martin Currie Sustainable |
Listed Funds and Martin Currie Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Listed Funds and Martin Currie
The main advantage of trading using opposite Listed Funds and Martin Currie positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Listed Funds position performs unexpectedly, Martin Currie 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 Martin Currie will offset losses from the drop in Martin Currie's long position.| Listed Funds vs. Global X Funds | Listed Funds vs. Dell Technologies | Listed Funds vs. Juniper Networks | Listed Funds vs. HUMANA INC |
| Martin Currie vs. BrandywineGLOBAL Dynamic | Martin Currie vs. First Trust Growth | Martin Currie vs. Invesco NASDAQ Future | Martin Currie vs. Burney Factor Rotation |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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