Correlation Between Korea Closed and Gmo Emerging
Can any of the company-specific risk be diversified away by investing in both Korea Closed and Gmo 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 Korea Closed and Gmo Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Korea Closed and Gmo Emerging Domestic, you can compare the effects of market volatilities on Korea Closed and Gmo 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 Korea Closed with a short position of Gmo Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Korea Closed and Gmo Emerging.
Diversification Opportunities for Korea Closed and Gmo Emerging
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Korea and Gmo is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Korea Closed and Gmo Emerging Domestic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gmo Emerging Domestic and Korea Closed 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 Korea Closed are associated (or correlated) with Gmo Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gmo Emerging Domestic has no effect on the direction of Korea Closed i.e., Korea Closed and Gmo Emerging go up and down completely randomly.
Pair Corralation between Korea Closed and Gmo Emerging
If you would invest 1,892 in Gmo Emerging Domestic on November 2, 2024 and sell it today you would earn a total of 0.00 from holding Gmo Emerging Domestic or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.97% |
| Values | Daily Returns |
Korea Closed vs. Gmo Emerging Domestic
Performance |
| Timeline |
| Korea Closed |
| Gmo Emerging Domestic |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Korea Closed and Gmo Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Korea Closed and Gmo Emerging
The main advantage of trading using opposite Korea Closed and Gmo Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Korea Closed position performs unexpectedly, Gmo 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 Gmo Emerging will offset losses from the drop in Gmo Emerging's long position.| Korea Closed vs. Mexico Equity And | Korea Closed vs. Western Asset Global | Korea Closed vs. New Germany Closed | Korea Closed vs. MFS Charter Income |
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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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