Correlation Between RENN Fund and MAYBANK EMERGING
Can any of the company-specific risk be diversified away by investing in both RENN Fund and MAYBANK 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 RENN Fund and MAYBANK EMERGING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RENN Fund and MAYBANK EMERGING ETF, you can compare the effects of market volatilities on RENN Fund and MAYBANK 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 RENN Fund with a short position of MAYBANK EMERGING. Check out your portfolio center. Please also check ongoing floating volatility patterns of RENN Fund and MAYBANK EMERGING.
Diversification Opportunities for RENN Fund and MAYBANK EMERGING
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between RENN and MAYBANK is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding RENN Fund and MAYBANK EMERGING ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MAYBANK EMERGING ETF and RENN Fund 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 RENN Fund are associated (or correlated) with MAYBANK EMERGING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MAYBANK EMERGING ETF has no effect on the direction of RENN Fund i.e., RENN Fund and MAYBANK EMERGING go up and down completely randomly.
Pair Corralation between RENN Fund and MAYBANK EMERGING
Considering the 90-day investment horizon RENN Fund is expected to generate 2.2 times more return on investment than MAYBANK EMERGING. However, RENN Fund is 2.2 times more volatile than MAYBANK EMERGING ETF. It trades about 0.04 of its potential returns per unit of risk. MAYBANK EMERGING ETF is currently generating about 0.04 per unit of risk. If you would invest 198.00 in RENN Fund on August 26, 2024 and sell it today you would earn a total of 72.00 from holding RENN Fund or generate 36.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
RENN Fund vs. MAYBANK EMERGING ETF
Performance |
| Timeline |
| RENN Fund |
| MAYBANK EMERGING ETF |
RENN Fund and MAYBANK EMERGING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RENN Fund and MAYBANK EMERGING
The main advantage of trading using opposite RENN Fund and MAYBANK EMERGING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RENN Fund position performs unexpectedly, MAYBANK 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 MAYBANK EMERGING will offset losses from the drop in MAYBANK EMERGING's long position.| RENN Fund vs. Ellsworth Convertible Growth | RENN Fund vs. Delaware Investments Florida | RENN Fund vs. Nuveen New Jersey | RENN Fund vs. John Hancock Hedged |
| MAYBANK EMERGING vs. RENN Fund | MAYBANK EMERGING vs. Sunlands Technology Group | MAYBANK EMERGING vs. ECGI Holdings | MAYBANK EMERGING vs. Cohen Steers Tax Advantaged |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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