Correlation Between Ep Emerging and Frost Credit
Can any of the company-specific risk be diversified away by investing in both Ep Emerging and Frost Credit 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 Frost Credit 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 Frost Credit Fund, you can compare the effects of market volatilities on Ep Emerging and Frost Credit 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 Frost Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ep Emerging and Frost Credit.
Diversification Opportunities for Ep Emerging and Frost Credit
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between EPASX and Frost is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Ep Emerging Markets and Frost Credit Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Frost Credit 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 Frost Credit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Frost Credit has no effect on the direction of Ep Emerging i.e., Ep Emerging and Frost Credit go up and down completely randomly.
Pair Corralation between Ep Emerging and Frost Credit
Assuming the 90 days horizon Ep Emerging Markets is expected to under-perform the Frost Credit. In addition to that, Ep Emerging is 3.58 times more volatile than Frost Credit Fund. It trades about -0.22 of its total potential returns per unit of risk. Frost Credit Fund is currently generating about 0.09 per unit of volatility. If you would invest 945.00 in Frost Credit Fund on September 3, 2024 and sell it today you would earn a total of 4.00 from holding Frost Credit Fund or generate 0.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ep Emerging Markets vs. Frost Credit Fund
Performance |
| Timeline |
| Ep Emerging Markets |
| Frost Credit |
Ep Emerging and Frost Credit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ep Emerging and Frost Credit
The main advantage of trading using opposite Ep Emerging and Frost Credit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ep Emerging position performs unexpectedly, Frost Credit 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 Frost Credit will offset losses from the drop in Frost Credit's long position.| Ep Emerging vs. Wasatch Small Cap | Ep Emerging vs. Small Cap Stock | Ep Emerging vs. Davenport Small Cap | Ep Emerging vs. Sentinel Small Pany |
| Frost Credit vs. Clearbridge Energy Mlp | Frost Credit vs. Oil Gas Ultrasector | Frost Credit vs. Invesco Energy Fund | Frost Credit vs. Franklin Natural Resources |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |