Correlation Between Martin Currie and REX FANG
Can any of the company-specific risk be diversified away by investing in both Martin Currie and REX FANG 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 REX FANG 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 REX FANG Innovation, you can compare the effects of market volatilities on Martin Currie and REX FANG 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 REX FANG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Martin Currie and REX FANG.
Diversification Opportunities for Martin Currie and REX FANG
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Martin and REX is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Martin Currie Sustainable and REX FANG Innovation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on REX FANG Innovation 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 REX FANG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of REX FANG Innovation has no effect on the direction of Martin Currie i.e., Martin Currie and REX FANG go up and down completely randomly.
Pair Corralation between Martin Currie and REX FANG
Given the investment horizon of 90 days Martin Currie Sustainable is expected to under-perform the REX FANG. In addition to that, Martin Currie is 1.15 times more volatile than REX FANG Innovation. It trades about -0.31 of its total potential returns per unit of risk. REX FANG Innovation is currently generating about 0.09 per unit of volatility. If you would invest 5,109 in REX FANG Innovation on August 26, 2024 and sell it today you would earn a total of 96.00 from holding REX FANG Innovation or generate 1.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Martin Currie Sustainable vs. REX FANG Innovation
Performance |
| Timeline |
| Martin Currie Sustainable |
| REX FANG Innovation |
Martin Currie and REX FANG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Martin Currie and REX FANG
The main advantage of trading using opposite Martin Currie and REX FANG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Martin Currie position performs unexpectedly, REX FANG 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 REX FANG will offset losses from the drop in REX FANG'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 |
| REX FANG vs. iShares Dividend and | REX FANG vs. Martin Currie Sustainable | REX FANG vs. VictoryShares THB Mid | REX FANG 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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