Correlation Between Emerging Markets and Shelton Emerging
Can any of the company-specific risk be diversified away by investing in both Emerging Markets and Shelton Emerging 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 Emerging Markets and Shelton Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Emerging Markets and Shelton Emerging Markets, you can compare the effects of market volatilities on Emerging Markets and Shelton Emerging 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 Emerging Markets with a short position of Shelton Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Emerging Markets and Shelton Emerging.
Diversification Opportunities for Emerging Markets and Shelton Emerging
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Emerging and Shelton is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding The Emerging Markets and Shelton Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shelton Emerging Markets and Emerging Markets 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 The Emerging Markets are associated (or correlated) with Shelton Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shelton Emerging Markets has no effect on the direction of Emerging Markets i.e., Emerging Markets and Shelton Emerging go up and down completely randomly.
Pair Corralation between Emerging Markets and Shelton Emerging
Assuming the 90 days horizon The Emerging Markets is expected to generate 0.86 times more return on investment than Shelton Emerging. However, The Emerging Markets is 1.16 times less risky than Shelton Emerging. It trades about 0.06 of its potential returns per unit of risk. Shelton Emerging Markets is currently generating about 0.0 per unit of risk. If you would invest 1,674 in The Emerging Markets on September 12, 2024 and sell it today you would earn a total of 264.00 from holding The Emerging Markets or generate 15.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Emerging Markets vs. Shelton Emerging Markets
Performance |
| Timeline |
| Emerging Markets |
| Shelton Emerging Markets |
Emerging Markets and Shelton Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Emerging Markets and Shelton Emerging
The main advantage of trading using opposite Emerging Markets and Shelton Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Emerging Markets position performs unexpectedly, Shelton Emerging 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 Shelton Emerging will offset losses from the drop in Shelton Emerging's long position.| Emerging Markets vs. Ab Global Risk | Emerging Markets vs. Jhancock Global Equity | Emerging Markets vs. Kinetics Global Fund | Emerging Markets vs. Ab Global Real |
| Shelton Emerging vs. American Funds New | Shelton Emerging vs. SCOR PK | Shelton Emerging vs. Morningstar Unconstrained Allocation | Shelton Emerging vs. Via Renewables |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |