Correlation Between Martin Currie and Themes Cybersecurity
Can any of the company-specific risk be diversified away by investing in both Martin Currie and Themes Cybersecurity 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 Themes Cybersecurity 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 Themes Cybersecurity ETF, you can compare the effects of market volatilities on Martin Currie and Themes Cybersecurity 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 Themes Cybersecurity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Martin Currie and Themes Cybersecurity.
Diversification Opportunities for Martin Currie and Themes Cybersecurity
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Martin and Themes is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Martin Currie Sustainable and Themes Cybersecurity ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Themes Cybersecurity ETF 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 Themes Cybersecurity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Themes Cybersecurity ETF has no effect on the direction of Martin Currie i.e., Martin Currie and Themes Cybersecurity go up and down completely randomly.
Pair Corralation between Martin Currie and Themes Cybersecurity
Given the investment horizon of 90 days Martin Currie Sustainable is expected to under-perform the Themes Cybersecurity. But the etf apears to be less risky and, when comparing its historical volatility, Martin Currie Sustainable is 1.23 times less risky than Themes Cybersecurity. The etf trades about -0.27 of its potential returns per unit of risk. The Themes Cybersecurity ETF is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 2,958 in Themes Cybersecurity ETF on August 30, 2024 and sell it today you would earn a total of 72.00 from holding Themes Cybersecurity ETF or generate 2.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Martin Currie Sustainable vs. Themes Cybersecurity ETF
Performance |
| Timeline |
| Martin Currie Sustainable |
| Themes Cybersecurity ETF |
Martin Currie and Themes Cybersecurity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Martin Currie and Themes Cybersecurity
The main advantage of trading using opposite Martin Currie and Themes Cybersecurity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Martin Currie position performs unexpectedly, Themes Cybersecurity 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 Themes Cybersecurity will offset losses from the drop in Themes Cybersecurity'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 |
| Themes Cybersecurity vs. Freedom Day Dividend | Themes Cybersecurity vs. Franklin Templeton ETF | Themes Cybersecurity vs. iShares MSCI China | Themes Cybersecurity vs. Tidal Trust II |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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