Correlation Between AdvisorShares Gerber and Martin Currie
Can any of the company-specific risk be diversified away by investing in both AdvisorShares Gerber and Martin Currie 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 AdvisorShares Gerber and Martin Currie into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AdvisorShares Gerber Kawasaki and Martin Currie Sustainable, you can compare the effects of market volatilities on AdvisorShares Gerber and Martin Currie 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 AdvisorShares Gerber with a short position of Martin Currie. Check out your portfolio center. Please also check ongoing floating volatility patterns of AdvisorShares Gerber and Martin Currie.
Diversification Opportunities for AdvisorShares Gerber and Martin Currie
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between AdvisorShares and Martin is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding AdvisorShares Gerber Kawasaki and Martin Currie Sustainable in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Martin Currie Sustainable and AdvisorShares Gerber 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 AdvisorShares Gerber Kawasaki are associated (or correlated) with Martin Currie. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Martin Currie Sustainable has no effect on the direction of AdvisorShares Gerber i.e., AdvisorShares Gerber and Martin Currie go up and down completely randomly.
Pair Corralation between AdvisorShares Gerber and Martin Currie
Allowing for the 90-day total investment horizon AdvisorShares Gerber Kawasaki is expected to generate 0.9 times more return on investment than Martin Currie. However, AdvisorShares Gerber Kawasaki is 1.11 times less risky than Martin Currie. It trades about 0.13 of its potential returns per unit of risk. Martin Currie Sustainable is currently generating about -0.3 per unit of risk. If you would invest 2,176 in AdvisorShares Gerber Kawasaki on August 28, 2024 and sell it today you would earn a total of 63.00 from holding AdvisorShares Gerber Kawasaki or generate 2.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AdvisorShares Gerber Kawasaki vs. Martin Currie Sustainable
Performance |
| Timeline |
| AdvisorShares Gerber |
| Martin Currie Sustainable |
AdvisorShares Gerber and Martin Currie Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AdvisorShares Gerber and Martin Currie
The main advantage of trading using opposite AdvisorShares Gerber and Martin Currie positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AdvisorShares Gerber position performs unexpectedly, Martin Currie 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 Martin Currie will offset losses from the drop in Martin Currie's long position.| AdvisorShares Gerber vs. The Future Fund | AdvisorShares Gerber vs. Tidal ETF Trust | AdvisorShares Gerber vs. Unifirst | AdvisorShares Gerber vs. Hawaiian Telcom Holdco |
| Martin Currie vs. BrandywineGLOBAL Dynamic | Martin Currie vs. First Trust Growth | Martin Currie vs. Invesco NASDAQ Future | Martin Currie vs. Burney Factor Rotation |
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 Stocks Directory module to find actively traded stocks across global markets.
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