Correlation Between Hood River and Emerging Markets
Can any of the company-specific risk be diversified away by investing in both Hood River and Emerging Markets 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 Hood River and Emerging Markets into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hood River New and Emerging Markets Leaders, you can compare the effects of market volatilities on Hood River and Emerging Markets 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 Hood River with a short position of Emerging Markets. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hood River and Emerging Markets.
Diversification Opportunities for Hood River and Emerging Markets
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hood and Emerging is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Hood River New and Emerging Markets Leaders in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emerging Markets Leaders and Hood River 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 Hood River New are associated (or correlated) with Emerging Markets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emerging Markets Leaders has no effect on the direction of Hood River i.e., Hood River and Emerging Markets go up and down completely randomly.
Pair Corralation between Hood River and Emerging Markets
If you would invest 1,000.00 in Hood River New on September 4, 2024 and sell it today you would earn a total of 420.00 from holding Hood River New or generate 42.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 1.19% |
| Values | Daily Returns |
Hood River New vs. Emerging Markets Leaders
Performance |
| Timeline |
| Hood River New |
| Emerging Markets Leaders |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Hood River and Emerging Markets Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hood River and Emerging Markets
The main advantage of trading using opposite Hood River and Emerging Markets positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hood River position performs unexpectedly, Emerging Markets 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 Emerging Markets will offset losses from the drop in Emerging Markets' long position.| Hood River vs. Vanguard Total Stock | Hood River vs. Vanguard 500 Index | Hood River vs. Vanguard Total Stock | Hood River vs. Vanguard Total Stock |
| Emerging Markets vs. Hood River New | Emerging Markets vs. T Rowe Price | Emerging Markets vs. T Rowe Price | Emerging Markets vs. T Rowe Price |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |