Correlation Between Blrc Sgy and Sa Emerging
Can any of the company-specific risk be diversified away by investing in both Blrc Sgy and Sa Emerging 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 Blrc Sgy and Sa Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blrc Sgy Mnp and Sa Emerging Markets, you can compare the effects of market volatilities on Blrc Sgy and Sa Emerging 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 Blrc Sgy with a short position of Sa Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blrc Sgy and Sa Emerging.
Diversification Opportunities for Blrc Sgy and Sa Emerging
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Blrc and SAEMX is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Blrc Sgy Mnp and Sa Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sa Emerging Markets and Blrc Sgy 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 Blrc Sgy Mnp are associated (or correlated) with Sa Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sa Emerging Markets has no effect on the direction of Blrc Sgy i.e., Blrc Sgy and Sa Emerging go up and down completely randomly.
Pair Corralation between Blrc Sgy and Sa Emerging
Assuming the 90 days horizon Blrc Sgy Mnp is expected to generate 0.37 times more return on investment than Sa Emerging. However, Blrc Sgy Mnp is 2.69 times less risky than Sa Emerging. It trades about 0.39 of its potential returns per unit of risk. Sa Emerging Markets is currently generating about 0.12 per unit of risk. If you would invest 1,056 in Blrc Sgy Mnp on September 13, 2024 and sell it today you would earn a total of 15.00 from holding Blrc Sgy Mnp or generate 1.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blrc Sgy Mnp vs. Sa Emerging Markets
Performance |
| Timeline |
| Blrc Sgy Mnp |
| Sa Emerging Markets |
Blrc Sgy and Sa Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blrc Sgy and Sa Emerging
The main advantage of trading using opposite Blrc Sgy and Sa Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blrc Sgy position performs unexpectedly, Sa Emerging 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 Sa Emerging will offset losses from the drop in Sa Emerging's long position.| Blrc Sgy vs. Leggmason Partners Institutional | Blrc Sgy vs. Balanced Fund Investor | Blrc Sgy vs. T Rowe Price | Blrc Sgy vs. Acm Dynamic Opportunity |
| Sa Emerging vs. Sa Value | Sa Emerging vs. Sa International Small | Sa Emerging vs. Sa International Value | Sa Emerging vs. Sa Mkt Fd |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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