Correlation Between Martin Currie and Dimensional International
Can any of the company-specific risk be diversified away by investing in both Martin Currie and Dimensional International 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 Dimensional International 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 Dimensional International Sustainability, you can compare the effects of market volatilities on Martin Currie and Dimensional International 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 Dimensional International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Martin Currie and Dimensional International.
Diversification Opportunities for Martin Currie and Dimensional International
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Martin and Dimensional is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Martin Currie Sustainable and Dimensional International Sust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dimensional International 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 Dimensional International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dimensional International has no effect on the direction of Martin Currie i.e., Martin Currie and Dimensional International go up and down completely randomly.
Pair Corralation between Martin Currie and Dimensional International
Given the investment horizon of 90 days Martin Currie Sustainable is expected to under-perform the Dimensional International. In addition to that, Martin Currie is 1.29 times more volatile than Dimensional International Sustainability. It trades about -0.15 of its total potential returns per unit of risk. Dimensional International Sustainability is currently generating about 0.02 per unit of volatility. If you would invest 3,389 in Dimensional International Sustainability on September 4, 2024 and sell it today you would earn a total of 12.00 from holding Dimensional International Sustainability or generate 0.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.24% |
| Values | Daily Returns |
Martin Currie Sustainable vs. Dimensional International Sust
Performance |
| Timeline |
| Martin Currie Sustainable |
| Dimensional International |
Martin Currie and Dimensional International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Martin Currie and Dimensional International
The main advantage of trading using opposite Martin Currie and Dimensional International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Martin Currie position performs unexpectedly, Dimensional International 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 Dimensional International will offset losses from the drop in Dimensional International'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 |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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