Correlation Between Martin Currie and Roundhill Magnificent
Can any of the company-specific risk be diversified away by investing in both Martin Currie and Roundhill Magnificent 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 Roundhill Magnificent 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 Roundhill Magnificent Seven, you can compare the effects of market volatilities on Martin Currie and Roundhill Magnificent 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 Roundhill Magnificent. Check out your portfolio center. Please also check ongoing floating volatility patterns of Martin Currie and Roundhill Magnificent.
Diversification Opportunities for Martin Currie and Roundhill Magnificent
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Martin and Roundhill is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Martin Currie Sustainable and Roundhill Magnificent Seven in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Roundhill Magnificent 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 Roundhill Magnificent. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Roundhill Magnificent has no effect on the direction of Martin Currie i.e., Martin Currie and Roundhill Magnificent go up and down completely randomly.
Pair Corralation between Martin Currie and Roundhill Magnificent
Given the investment horizon of 90 days Martin Currie Sustainable is expected to generate 0.52 times more return on investment than Roundhill Magnificent. However, Martin Currie Sustainable is 1.94 times less risky than Roundhill Magnificent. It trades about 0.18 of its potential returns per unit of risk. Roundhill Magnificent Seven is currently generating about 0.01 per unit of risk. If you would invest 1,322 in Martin Currie Sustainable on October 20, 2024 and sell it today you would earn a total of 42.00 from holding Martin Currie Sustainable or generate 3.18% 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. Roundhill Magnificent Seven
Performance |
| Timeline |
| Martin Currie Sustainable |
| Roundhill Magnificent |
Martin Currie and Roundhill Magnificent Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Martin Currie and Roundhill Magnificent
The main advantage of trading using opposite Martin Currie and Roundhill Magnificent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Martin Currie position performs unexpectedly, Roundhill Magnificent 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 Roundhill Magnificent will offset losses from the drop in Roundhill Magnificent'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 |
| Roundhill Magnificent vs. iShares Dividend and | Roundhill Magnificent vs. Martin Currie Sustainable | Roundhill Magnificent vs. VictoryShares THB Mid | Roundhill Magnificent 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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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