Correlation Between Martin Currie and AdvisorShares Gerber
Can any of the company-specific risk be diversified away by investing in both Martin Currie and AdvisorShares Gerber 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 AdvisorShares Gerber 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 AdvisorShares Gerber Kawasaki, you can compare the effects of market volatilities on Martin Currie and AdvisorShares Gerber 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 AdvisorShares Gerber. Check out your portfolio center. Please also check ongoing floating volatility patterns of Martin Currie and AdvisorShares Gerber.
Diversification Opportunities for Martin Currie and AdvisorShares Gerber
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Martin and AdvisorShares is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Martin Currie Sustainable and AdvisorShares Gerber Kawasaki in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AdvisorShares Gerber 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 AdvisorShares Gerber. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AdvisorShares Gerber has no effect on the direction of Martin Currie i.e., Martin Currie and AdvisorShares Gerber go up and down completely randomly.
Pair Corralation between Martin Currie and AdvisorShares Gerber
Given the investment horizon of 90 days Martin Currie Sustainable is expected to under-perform the AdvisorShares Gerber. In addition to that, Martin Currie is 1.01 times more volatile than AdvisorShares Gerber Kawasaki. It trades about -0.03 of its total potential returns per unit of risk. AdvisorShares Gerber Kawasaki is currently generating about 0.08 per unit of volatility. If you would invest 1,859 in AdvisorShares Gerber Kawasaki on August 28, 2024 and sell it today you would earn a total of 380.00 from holding AdvisorShares Gerber Kawasaki or generate 20.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Martin Currie Sustainable vs. AdvisorShares Gerber Kawasaki
Performance |
| Timeline |
| Martin Currie Sustainable |
| AdvisorShares Gerber |
Martin Currie and AdvisorShares Gerber Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Martin Currie and AdvisorShares Gerber
The main advantage of trading using opposite Martin Currie and AdvisorShares Gerber positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Martin Currie position performs unexpectedly, AdvisorShares Gerber 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 AdvisorShares Gerber will offset losses from the drop in AdvisorShares Gerber's long position.| Martin Currie vs. BrandywineGLOBAL Dynamic | Martin Currie vs. First Trust Growth | Martin Currie vs. Invesco NASDAQ Future | Martin Currie vs. VanEck Green Infrastructure |
| AdvisorShares Gerber vs. The Future Fund | AdvisorShares Gerber vs. Tidal ETF Trust | AdvisorShares Gerber vs. Unifirst | AdvisorShares Gerber vs. Hawaiian Telcom Holdco |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |