Correlation Between Origin Emerging and Ep Emerging
Can any of the company-specific risk be diversified away by investing in both Origin Emerging 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 Origin Emerging and Ep Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Origin Emerging Markets and Ep Emerging Markets, you can compare the effects of market volatilities on Origin Emerging 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 Origin Emerging with a short position of Ep Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Origin Emerging and Ep Emerging.
Diversification Opportunities for Origin Emerging and Ep Emerging
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Origin and EPASX is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Origin Emerging Markets 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 Origin 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 Origin Emerging Markets 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 Origin Emerging i.e., Origin Emerging and Ep Emerging go up and down completely randomly.
Pair Corralation between Origin Emerging and Ep Emerging
Assuming the 90 days horizon Origin Emerging Markets is expected to generate 1.18 times more return on investment than Ep Emerging. However, Origin Emerging is 1.18 times more volatile than Ep Emerging Markets. It trades about 0.08 of its potential returns per unit of risk. Ep Emerging Markets is currently generating about 0.06 per unit of risk. If you would invest 842.00 in Origin Emerging Markets on August 25, 2024 and sell it today you would earn a total of 180.00 from holding Origin Emerging Markets or generate 21.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Origin Emerging Markets vs. Ep Emerging Markets
Performance |
| Timeline |
| Origin Emerging Markets |
| Ep Emerging Markets |
Origin Emerging and Ep Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Origin Emerging and Ep Emerging
The main advantage of trading using opposite Origin Emerging and Ep Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Origin Emerging 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.| Origin Emerging vs. Strategic Asset Management | Origin Emerging vs. Strategic Asset Management | Origin Emerging vs. Strategic Asset Management | Origin Emerging vs. Strategic Asset Management |
| Ep Emerging vs. Europac International Bond | Ep Emerging vs. Europac International Dividend | Ep Emerging vs. Ep Emerging Markets | Ep Emerging vs. Investment Managers Series |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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