Correlation Between Malaga Financial and Ep Emerging
Can any of the company-specific risk be diversified away by investing in both Malaga Financial and Ep 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 Malaga Financial and Ep Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Malaga Financial and Ep Emerging Markets, you can compare the effects of market volatilities on Malaga Financial and Ep 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 Malaga Financial with a short position of Ep Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Malaga Financial and Ep Emerging.
Diversification Opportunities for Malaga Financial and Ep Emerging
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Malaga and EPASX is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Malaga Financial and Ep Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ep Emerging Markets and Malaga Financial 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 Malaga Financial are associated (or correlated) with Ep Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ep Emerging Markets has no effect on the direction of Malaga Financial i.e., Malaga Financial and Ep Emerging go up and down completely randomly.
Pair Corralation between Malaga Financial and Ep Emerging
Given the investment horizon of 90 days Malaga Financial is expected to generate 5.3 times more return on investment than Ep Emerging. However, Malaga Financial is 5.3 times more volatile than Ep Emerging Markets. It trades about 0.03 of its potential returns per unit of risk. Ep Emerging Markets is currently generating about 0.02 per unit of risk. If you would invest 2,033 in Malaga Financial on August 23, 2024 and sell it today you would earn a total of 242.00 from holding Malaga Financial or generate 11.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 81.85% |
| Values | Daily Returns |
Malaga Financial vs. Ep Emerging Markets
Performance |
| Timeline |
| Malaga Financial |
| Ep Emerging Markets |
Malaga Financial and Ep Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Malaga Financial and Ep Emerging
The main advantage of trading using opposite Malaga Financial and Ep Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Malaga Financial position performs unexpectedly, Ep 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 Ep Emerging will offset losses from the drop in Ep Emerging's long position.| Malaga Financial vs. Pioneer Floating Rate | Malaga Financial vs. The Gabelli Equity | Malaga Financial vs. Pioneer Municipal High | Malaga Financial vs. Nuveen Global High |
| Ep Emerging vs. Vanguard Emerging Markets | Ep Emerging vs. Vanguard Emerging Markets | Ep Emerging vs. Vanguard Emerging Markets | Ep Emerging vs. HUMANA INC |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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