Correlation Between Ep Emerging and Manning Napier
Can any of the company-specific risk be diversified away by investing in both Ep Emerging and Manning Napier 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 Manning Napier 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 Manning Napier Callodine, you can compare the effects of market volatilities on Ep Emerging and Manning Napier 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 Manning Napier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ep Emerging and Manning Napier.
Diversification Opportunities for Ep Emerging and Manning Napier
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between EPEIX and Manning is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Ep Emerging Markets and Manning Napier Callodine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manning Napier Callodine 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 Manning Napier. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Manning Napier Callodine has no effect on the direction of Ep Emerging i.e., Ep Emerging and Manning Napier go up and down completely randomly.
Pair Corralation between Ep Emerging and Manning Napier
Assuming the 90 days horizon Ep Emerging Markets is expected to generate 0.62 times more return on investment than Manning Napier. However, Ep Emerging Markets is 1.62 times less risky than Manning Napier. It trades about 0.19 of its potential returns per unit of risk. Manning Napier Callodine is currently generating about -0.15 per unit of risk. If you would invest 989.00 in Ep Emerging Markets on November 28, 2024 and sell it today you would earn a total of 23.00 from holding Ep Emerging Markets or generate 2.33% 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. Manning Napier Callodine
Performance |
| Timeline |
| Ep Emerging Markets |
| Manning Napier Callodine |
Ep Emerging and Manning Napier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ep Emerging and Manning Napier
The main advantage of trading using opposite Ep Emerging and Manning Napier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ep Emerging position performs unexpectedly, Manning Napier 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 Manning Napier will offset losses from the drop in Manning Napier's long position.| Ep Emerging vs. Maryland Short Term Tax Free | Ep Emerging vs. Barings Emerging Markets | Ep Emerging vs. Shelton Emerging Markets | Ep Emerging vs. Transamerica Emerging Markets |
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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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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