Correlation Between Emerging Markets and Oberweis Emerging
Can any of the company-specific risk be diversified away by investing in both Emerging Markets and Oberweis 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 Oberweis 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 Oberweis Emerging Markets, you can compare the effects of market volatilities on Emerging Markets and Oberweis 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 Oberweis Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Emerging Markets and Oberweis Emerging.
Diversification Opportunities for Emerging Markets and Oberweis Emerging
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Emerging and Oberweis is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding The Emerging Markets and Oberweis Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oberweis 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 Oberweis Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oberweis Emerging Markets has no effect on the direction of Emerging Markets i.e., Emerging Markets and Oberweis Emerging go up and down completely randomly.
Pair Corralation between Emerging Markets and Oberweis Emerging
Assuming the 90 days horizon The Emerging Markets is expected to generate 17.34 times more return on investment than Oberweis Emerging. However, Emerging Markets is 17.34 times more volatile than Oberweis Emerging Markets. It trades about 0.08 of its potential returns per unit of risk. Oberweis Emerging Markets is currently generating about -0.38 per unit of risk. If you would invest 1,891 in The Emerging Markets on September 13, 2024 and sell it today you would earn a total of 21.00 from holding The Emerging Markets or generate 1.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 33.33% |
| Values | Daily Returns |
The Emerging Markets vs. Oberweis Emerging Markets
Performance |
| Timeline |
| Emerging Markets |
| Oberweis Emerging Markets |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Emerging Markets and Oberweis Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Emerging Markets and Oberweis Emerging
The main advantage of trading using opposite Emerging Markets and Oberweis Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Emerging Markets position performs unexpectedly, Oberweis 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 Oberweis Emerging will offset losses from the drop in Oberweis Emerging's long position.| Emerging Markets vs. Ab Global Risk | Emerging Markets vs. Commonwealth Global Fund | Emerging Markets vs. 361 Global Longshort | Emerging Markets vs. Ab Global Bond |
| Oberweis Emerging vs. Oberweis Micro Cap Fund | Oberweis Emerging vs. Wasatch Emerging India | Oberweis Emerging vs. Driehaus Emerging Markets | Oberweis Emerging vs. Wasatch Emerging Markets |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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