Correlation Between Ep Emerging and Amcap Fund
Can any of the company-specific risk be diversified away by investing in both Ep Emerging and Amcap Fund 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 Amcap Fund 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 Amcap Fund Class, you can compare the effects of market volatilities on Ep Emerging and Amcap Fund 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 Amcap Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ep Emerging and Amcap Fund.
Diversification Opportunities for Ep Emerging and Amcap Fund
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between EPASX and AMCAP is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Ep Emerging Markets and Amcap Fund Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amcap Fund Class 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 Amcap Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amcap Fund Class has no effect on the direction of Ep Emerging i.e., Ep Emerging and Amcap Fund go up and down completely randomly.
Pair Corralation between Ep Emerging and Amcap Fund
Assuming the 90 days horizon Ep Emerging Markets is expected to under-perform the Amcap Fund. But the mutual fund apears to be less risky and, when comparing its historical volatility, Ep Emerging Markets is 1.12 times less risky than Amcap Fund. The mutual fund trades about -0.29 of its potential returns per unit of risk. The Amcap Fund Class is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 4,506 in Amcap Fund Class on August 27, 2024 and sell it today you would earn a total of 87.00 from holding Amcap Fund Class or generate 1.93% 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. Amcap Fund Class
Performance |
| Timeline |
| Ep Emerging Markets |
| Amcap Fund Class |
Ep Emerging and Amcap Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ep Emerging and Amcap Fund
The main advantage of trading using opposite Ep Emerging and Amcap Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ep Emerging position performs unexpectedly, Amcap Fund 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 Amcap Fund will offset losses from the drop in Amcap Fund's long position.| Ep Emerging vs. Europac International Bond | Ep Emerging vs. Europac International Dividend | Ep Emerging vs. Ep Emerging Markets | Ep Emerging vs. Investment Managers Series |
| Amcap Fund vs. Aqr Equity Market | Amcap Fund vs. Ep Emerging Markets | Amcap Fund vs. Western Asset Diversified | Amcap Fund vs. Pace International Emerging |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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