Correlation Between Martin Currie and IShares Future
Can any of the company-specific risk be diversified away by investing in both Martin Currie and IShares Future 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 Martin Currie and IShares Future into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Martin Currie Sustainable and iShares Future AI, you can compare the effects of market volatilities on Martin Currie and IShares Future 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 Martin Currie with a short position of IShares Future. Check out your portfolio center. Please also check ongoing floating volatility patterns of Martin Currie and IShares Future.
Diversification Opportunities for Martin Currie and IShares Future
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Martin and IShares is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Martin Currie Sustainable and iShares Future AI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Future AI and Martin Currie 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 Martin Currie Sustainable are associated (or correlated) with IShares Future. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Future AI has no effect on the direction of Martin Currie i.e., Martin Currie and IShares Future go up and down completely randomly.
Pair Corralation between Martin Currie and IShares Future
Given the investment horizon of 90 days Martin Currie Sustainable is expected to under-perform the IShares Future. But the etf apears to be less risky and, when comparing its historical volatility, Martin Currie Sustainable is 1.19 times less risky than IShares Future. The etf trades about 0.0 of its potential returns per unit of risk. The iShares Future AI is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 2,780 in iShares Future AI on October 9, 2024 and sell it today you would earn a total of 1,129 from holding iShares Future AI or generate 40.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Martin Currie Sustainable vs. iShares Future AI
Performance |
| Timeline |
| Martin Currie Sustainable |
| iShares Future AI |
Martin Currie and IShares Future Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Martin Currie and IShares Future
The main advantage of trading using opposite Martin Currie and IShares Future positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Martin Currie position performs unexpectedly, IShares Future 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 IShares Future will offset losses from the drop in IShares Future's long position.| Martin Currie vs. BrandywineGLOBAL Dynamic | Martin Currie vs. First Trust Growth | Martin Currie vs. Invesco NASDAQ Future | Martin Currie vs. Burney Factor Rotation |
| IShares Future vs. iShares Dividend and | IShares Future vs. Martin Currie Sustainable | IShares Future vs. VictoryShares THB Mid | IShares Future vs. Mast Global Battery |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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