Correlation Between Ep Emerging and Loews Corp
Can any of the company-specific risk be diversified away by investing in both Ep Emerging and Loews Corp 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 Loews Corp 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 Loews Corp, you can compare the effects of market volatilities on Ep Emerging and Loews Corp 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 Loews Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ep Emerging and Loews Corp.
Diversification Opportunities for Ep Emerging and Loews Corp
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between EPASX and Loews is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Ep Emerging Markets and Loews Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loews Corp 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 Loews Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Loews Corp has no effect on the direction of Ep Emerging i.e., Ep Emerging and Loews Corp go up and down completely randomly.
Pair Corralation between Ep Emerging and Loews Corp
Assuming the 90 days horizon Ep Emerging is expected to generate 17.21 times less return on investment than Loews Corp. But when comparing it to its historical volatility, Ep Emerging Markets is 1.1 times less risky than Loews Corp. It trades about 0.01 of its potential returns per unit of risk. Loews Corp is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 8,315 in Loews Corp on September 12, 2024 and sell it today you would earn a total of 185.00 from holding Loews Corp or generate 2.22% 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. Loews Corp
Performance |
| Timeline |
| Ep Emerging Markets |
| Loews Corp |
Ep Emerging and Loews Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ep Emerging and Loews Corp
The main advantage of trading using opposite Ep Emerging and Loews Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ep Emerging position performs unexpectedly, Loews Corp 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 Loews Corp will offset losses from the drop in Loews Corp's long position.| Ep Emerging vs. American Funds New | Ep Emerging vs. SCOR PK | Ep Emerging vs. Morningstar Unconstrained Allocation | Ep Emerging vs. Via Renewables |
| Loews Corp vs. Aeye Inc | Loews Corp vs. Ep Emerging Markets | Loews Corp vs. LiCycle Holdings Corp | Loews Corp vs. SEI Investments |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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