Correlation Between MAYBANK EMERGING and RENN Fund
Can any of the company-specific risk be diversified away by investing in both MAYBANK EMERGING and RENN Fund 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 MAYBANK EMERGING and RENN Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MAYBANK EMERGING ETF and RENN Fund, you can compare the effects of market volatilities on MAYBANK EMERGING and RENN Fund 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 MAYBANK EMERGING with a short position of RENN Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAYBANK EMERGING and RENN Fund.
Diversification Opportunities for MAYBANK EMERGING and RENN Fund
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between MAYBANK and RENN is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding MAYBANK EMERGING ETF and RENN Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RENN Fund and MAYBANK EMERGING 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 MAYBANK EMERGING ETF are associated (or correlated) with RENN Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RENN Fund has no effect on the direction of MAYBANK EMERGING i.e., MAYBANK EMERGING and RENN Fund go up and down completely randomly.
Pair Corralation between MAYBANK EMERGING and RENN Fund
Considering the 90-day investment horizon MAYBANK EMERGING ETF is expected to under-perform the RENN Fund. But the etf apears to be less risky and, when comparing its historical volatility, MAYBANK EMERGING ETF is 4.01 times less risky than RENN Fund. The etf trades about -0.15 of its potential returns per unit of risk. The RENN Fund is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 217.00 in RENN Fund on August 30, 2024 and sell it today you would earn a total of 34.00 from holding RENN Fund or generate 15.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
MAYBANK EMERGING ETF vs. RENN Fund
Performance |
| Timeline |
| MAYBANK EMERGING ETF |
| RENN Fund |
MAYBANK EMERGING and RENN Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAYBANK EMERGING and RENN Fund
The main advantage of trading using opposite MAYBANK EMERGING and RENN Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAYBANK EMERGING position performs unexpectedly, RENN Fund 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 RENN Fund will offset losses from the drop in RENN Fund's long position.| MAYBANK EMERGING vs. RENN Fund | MAYBANK EMERGING vs. Sunlands Technology Group | MAYBANK EMERGING vs. ECGI Holdings | MAYBANK EMERGING vs. Cohen Steers Tax Advantaged |
| RENN Fund vs. Ellsworth Convertible Growth | RENN Fund vs. Delaware Investments Florida | RENN Fund vs. Nuveen New Jersey | RENN Fund vs. John Hancock Hedged |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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