Correlation Between Emerging Markets and Sit Emerging
Can any of the company-specific risk be diversified away by investing in both Emerging Markets and Sit 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 Emerging Markets and Sit Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Emerging Markets Bond and Sit Emerging Markets, you can compare the effects of market volatilities on Emerging Markets and Sit 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 Emerging Markets with a short position of Sit Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Emerging Markets and Sit Emerging.
Diversification Opportunities for Emerging Markets and Sit Emerging
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Emerging and Sit is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Emerging Markets Bond and Sit Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sit Emerging Markets and Emerging Markets 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 Emerging Markets Bond are associated (or correlated) with Sit Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sit Emerging Markets has no effect on the direction of Emerging Markets i.e., Emerging Markets and Sit Emerging go up and down completely randomly.
Pair Corralation between Emerging Markets and Sit Emerging
Assuming the 90 days horizon Emerging Markets Bond is expected to generate 0.84 times more return on investment than Sit Emerging. However, Emerging Markets Bond is 1.19 times less risky than Sit Emerging. It trades about 0.06 of its potential returns per unit of risk. Sit Emerging Markets is currently generating about -0.02 per unit of risk. If you would invest 848.00 in Emerging Markets Bond on August 28, 2024 and sell it today you would earn a total of 9.00 from holding Emerging Markets Bond or generate 1.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Emerging Markets Bond vs. Sit Emerging Markets
Performance |
| Timeline |
| Emerging Markets Bond |
| Sit Emerging Markets |
Emerging Markets and Sit Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Emerging Markets and Sit Emerging
The main advantage of trading using opposite Emerging Markets and Sit Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Emerging Markets position performs unexpectedly, Sit 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 Sit Emerging will offset losses from the drop in Sit Emerging's long position.| Emerging Markets vs. Pimco Rae Worldwide | Emerging Markets vs. Pimco Rae Worldwide | Emerging Markets vs. Pimco Rae Worldwide | Emerging Markets vs. Pimco Rae Worldwide |
| Sit Emerging vs. Janus Global Technology | Sit Emerging vs. Invesco Technology Fund | Sit Emerging vs. Mfs Technology Fund | Sit Emerging vs. Blackrock Science Technology |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |