Correlation Between Ep Emerging and American Manganese
Can any of the company-specific risk be diversified away by investing in both Ep Emerging and American Manganese 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 Ep Emerging and American Manganese into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ep Emerging Markets and American Manganese, you can compare the effects of market volatilities on Ep Emerging and American Manganese 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 Ep Emerging with a short position of American Manganese. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ep Emerging and American Manganese.
Diversification Opportunities for Ep Emerging and American Manganese
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between EPASX and American is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Ep Emerging Markets and American Manganese in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Manganese and Ep 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 Ep Emerging Markets are associated (or correlated) with American Manganese. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Manganese has no effect on the direction of Ep Emerging i.e., Ep Emerging and American Manganese go up and down completely randomly.
Pair Corralation between Ep Emerging and American Manganese
Assuming the 90 days horizon Ep Emerging Markets is expected to generate 0.12 times more return on investment than American Manganese. However, Ep Emerging Markets is 8.22 times less risky than American Manganese. It trades about 0.01 of its potential returns per unit of risk. American Manganese is currently generating about -0.01 per unit of risk. If you would invest 989.00 in Ep Emerging Markets on August 23, 2024 and sell it today you would earn a total of 6.00 from holding Ep Emerging Markets or generate 0.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ep Emerging Markets vs. American Manganese
Performance |
| Timeline |
| Ep Emerging Markets |
| American Manganese |
Ep Emerging and American Manganese Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ep Emerging and American Manganese
The main advantage of trading using opposite Ep Emerging and American Manganese positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ep Emerging position performs unexpectedly, American Manganese 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 American Manganese will offset losses from the drop in American Manganese's long position.| Ep Emerging vs. Vanguard Emerging Markets | Ep Emerging vs. Vanguard Emerging Markets | Ep Emerging vs. Vanguard Emerging Markets | Ep Emerging vs. HUMANA INC |
| American Manganese vs. Mundoro Capital | American Manganese vs. Norra Metals Corp | American Manganese vs. E79 Resources Corp | American Manganese vs. Lithium Australia NL |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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