Correlation Between Ridgeworth Seix and Martin Currie
Can any of the company-specific risk be diversified away by investing in both Ridgeworth Seix and Martin Currie 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 Ridgeworth Seix and Martin Currie into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ridgeworth Seix Government and Martin Currie Emerging, you can compare the effects of market volatilities on Ridgeworth Seix and Martin Currie 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 Ridgeworth Seix with a short position of Martin Currie. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ridgeworth Seix and Martin Currie.
Diversification Opportunities for Ridgeworth Seix and Martin Currie
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ridgeworth and Martin is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Ridgeworth Seix Government and Martin Currie Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Martin Currie Emerging and Ridgeworth Seix 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 Ridgeworth Seix Government are associated (or correlated) with Martin Currie. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Martin Currie Emerging has no effect on the direction of Ridgeworth Seix i.e., Ridgeworth Seix and Martin Currie go up and down completely randomly.
Pair Corralation between Ridgeworth Seix and Martin Currie
Assuming the 90 days horizon Ridgeworth Seix Government is not expected to generate positive returns. However, Ridgeworth Seix Government is 22.07 times less risky than Martin Currie. It waists most of its returns potential to compensate for thr risk taken. Martin Currie is generating about 0.13 per unit of risk. If you would invest 1,218 in Martin Currie Emerging on November 3, 2024 and sell it today you would earn a total of 40.00 from holding Martin Currie Emerging or generate 3.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ridgeworth Seix Government vs. Martin Currie Emerging
Performance |
| Timeline |
| Ridgeworth Seix Gove |
| Martin Currie Emerging |
Ridgeworth Seix and Martin Currie Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ridgeworth Seix and Martin Currie
The main advantage of trading using opposite Ridgeworth Seix and Martin Currie positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ridgeworth Seix position performs unexpectedly, Martin Currie 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 Martin Currie will offset losses from the drop in Martin Currie's long position.| Ridgeworth Seix vs. Tiaa Cref Inflation Linked Bond | Ridgeworth Seix vs. Asg Managed Futures | Ridgeworth Seix vs. Credit Suisse Multialternative | Ridgeworth Seix vs. Ab Bond Inflation |
| Martin Currie vs. Intermediate Government Bond | Martin Currie vs. Elfun Government Money | Martin Currie vs. Great West Government Mortgage | Martin Currie vs. Us Government Securities |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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