Correlation Between AfricaRhodium ETF and E Media
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By analyzing existing cross correlation between AfricaRhodium ETF and E Media Holdings, you can compare the effects of market volatilities on AfricaRhodium ETF and E Media 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 AfricaRhodium ETF with a short position of E Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of AfricaRhodium ETF and E Media.
Diversification Opportunities for AfricaRhodium ETF and E Media
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AfricaRhodium and EMH is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding AfricaRhodium ETF and E Media Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on E Media Holdings and AfricaRhodium ETF 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 AfricaRhodium ETF are associated (or correlated) with E Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of E Media Holdings has no effect on the direction of AfricaRhodium ETF i.e., AfricaRhodium ETF and E Media go up and down completely randomly.
Pair Corralation between AfricaRhodium ETF and E Media
Assuming the 90 days trading horizon AfricaRhodium ETF is expected to generate 0.33 times more return on investment than E Media. However, AfricaRhodium ETF is 3.0 times less risky than E Media. It trades about 0.02 of its potential returns per unit of risk. E Media Holdings is currently generating about -0.09 per unit of risk. If you would invest 7,752,300 in AfricaRhodium ETF on November 28, 2024 and sell it today you would earn a total of 29,900 from holding AfricaRhodium ETF or generate 0.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
AfricaRhodium ETF vs. E Media Holdings
Performance |
| Timeline |
| AfricaRhodium ETF |
| E Media Holdings |
AfricaRhodium ETF and E Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AfricaRhodium ETF and E Media
The main advantage of trading using opposite AfricaRhodium ETF and E Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AfricaRhodium ETF position performs unexpectedly, E Media 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 E Media will offset losses from the drop in E Media's long position.| AfricaRhodium ETF vs. Satrix MSCI World | AfricaRhodium ETF vs. GSETNC | AfricaRhodium ETF vs. Satrix Swix Top | AfricaRhodium ETF vs. Satrix 40 ETF |
| E Media vs. Kumba Iron Ore | E Media vs. ABSA Bank Limited | E Media vs. Afine Investments | E Media vs. Bytes Technology |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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