Correlation Between Martin Currie and Freedom Day
Can any of the company-specific risk be diversified away by investing in both Martin Currie and Freedom Day 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 Freedom Day 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 Freedom Day Dividend, you can compare the effects of market volatilities on Martin Currie and Freedom Day 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 Freedom Day. Check out your portfolio center. Please also check ongoing floating volatility patterns of Martin Currie and Freedom Day.
Diversification Opportunities for Martin Currie and Freedom Day
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Martin and Freedom is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Martin Currie Sustainable and Freedom Day Dividend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Freedom Day Dividend 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 Freedom Day. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Freedom Day Dividend has no effect on the direction of Martin Currie i.e., Martin Currie and Freedom Day go up and down completely randomly.
Pair Corralation between Martin Currie and Freedom Day
Given the investment horizon of 90 days Martin Currie Sustainable is expected to under-perform the Freedom Day. In addition to that, Martin Currie is 1.29 times more volatile than Freedom Day Dividend. It trades about -0.13 of its total potential returns per unit of risk. Freedom Day Dividend is currently generating about 0.36 per unit of volatility. If you would invest 3,316 in Freedom Day Dividend on September 1, 2024 and sell it today you would earn a total of 216.00 from holding Freedom Day Dividend or generate 6.51% 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. Freedom Day Dividend
Performance |
| Timeline |
| Martin Currie Sustainable |
| Freedom Day Dividend |
Martin Currie and Freedom Day Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Martin Currie and Freedom Day
The main advantage of trading using opposite Martin Currie and Freedom Day positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Martin Currie position performs unexpectedly, Freedom Day 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 Freedom Day will offset losses from the drop in Freedom Day'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 |
| Freedom Day vs. iShares Core SP | Freedom Day vs. iShares Core MSCI | Freedom Day vs. iShares Broad USD | Freedom Day vs. iShares Core SP |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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