Correlation Between Martin Currie and IQ Global
Can any of the company-specific risk be diversified away by investing in both Martin Currie and IQ Global 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 IQ Global 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 IQ Global Equity, you can compare the effects of market volatilities on Martin Currie and IQ Global 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 IQ Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Martin Currie and IQ Global.
Diversification Opportunities for Martin Currie and IQ Global
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Martin and WRND is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Martin Currie Sustainable and IQ Global Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IQ Global Equity 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 IQ Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IQ Global Equity has no effect on the direction of Martin Currie i.e., Martin Currie and IQ Global go up and down completely randomly.
Pair Corralation between Martin Currie and IQ Global
Given the investment horizon of 90 days Martin Currie Sustainable is expected to under-perform the IQ Global. In addition to that, Martin Currie is 1.35 times more volatile than IQ Global Equity. It trades about -0.31 of its total potential returns per unit of risk. IQ Global Equity is currently generating about -0.12 per unit of volatility. If you would invest 2,975 in IQ Global Equity on August 26, 2024 and sell it today you would lose (67.00) from holding IQ Global Equity or give up 2.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Martin Currie Sustainable vs. IQ Global Equity
Performance |
| Timeline |
| Martin Currie Sustainable |
| IQ Global Equity |
Martin Currie and IQ Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Martin Currie and IQ Global
The main advantage of trading using opposite Martin Currie and IQ Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Martin Currie position performs unexpectedly, IQ Global 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 IQ Global will offset losses from the drop in IQ Global'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 |
| IQ Global vs. iShares Dividend and | IQ Global vs. Martin Currie Sustainable | IQ Global vs. VictoryShares THB Mid | IQ Global 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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