Correlation Between Main Thematic and SmartETFs Advertising
Can any of the company-specific risk be diversified away by investing in both Main Thematic and SmartETFs Advertising 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 Main Thematic and SmartETFs Advertising into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Main Thematic Innovation and SmartETFs Advertising Marketing, you can compare the effects of market volatilities on Main Thematic and SmartETFs Advertising 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 Main Thematic with a short position of SmartETFs Advertising. Check out your portfolio center. Please also check ongoing floating volatility patterns of Main Thematic and SmartETFs Advertising.
Diversification Opportunities for Main Thematic and SmartETFs Advertising
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Main and SmartETFs is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Main Thematic Innovation and SmartETFs Advertising Marketin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SmartETFs Advertising and Main Thematic 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 Main Thematic Innovation are associated (or correlated) with SmartETFs Advertising. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SmartETFs Advertising has no effect on the direction of Main Thematic i.e., Main Thematic and SmartETFs Advertising go up and down completely randomly.
Pair Corralation between Main Thematic and SmartETFs Advertising
If you would invest 1,869 in Main Thematic Innovation on August 30, 2024 and sell it today you would earn a total of 278.00 from holding Main Thematic Innovation or generate 14.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 22.73% |
| Values | Daily Returns |
Main Thematic Innovation vs. SmartETFs Advertising Marketin
Performance |
| Timeline |
| Main Thematic Innovation |
| SmartETFs Advertising |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
Main Thematic and SmartETFs Advertising Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Main Thematic and SmartETFs Advertising
The main advantage of trading using opposite Main Thematic and SmartETFs Advertising positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Main Thematic position performs unexpectedly, SmartETFs Advertising 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 SmartETFs Advertising will offset losses from the drop in SmartETFs Advertising's long position.| Main Thematic vs. Global X Conscious | Main Thematic vs. Global X SP | Main Thematic vs. Global X Millennials | Main Thematic vs. Global X MSCI |
| SmartETFs Advertising vs. SmartETFs Smart Transportation | SmartETFs Advertising vs. Global X Thematic | SmartETFs Advertising vs. Franklin Disruptive Commerce |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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