Correlation Between Intermediate Term and Ep Emerging
Can any of the company-specific risk be diversified away by investing in both Intermediate Term 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 Intermediate Term and Ep Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intermediate Term Bond Fund and Ep Emerging Markets, you can compare the effects of market volatilities on Intermediate Term 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 Intermediate Term with a short position of Ep Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intermediate Term and Ep Emerging.
Diversification Opportunities for Intermediate Term and Ep Emerging
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Intermediate and EPEIX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Intermediate Term Bond Fund 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 Intermediate Term 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 Intermediate Term Bond Fund 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 Intermediate Term i.e., Intermediate Term and Ep Emerging go up and down completely randomly.
Pair Corralation between Intermediate Term and Ep Emerging
Assuming the 90 days horizon Intermediate Term is expected to generate 1.05 times less return on investment than Ep Emerging. But when comparing it to its historical volatility, Intermediate Term Bond Fund is 1.97 times less risky than Ep Emerging. It trades about 0.05 of its potential returns per unit of risk. Ep Emerging Markets is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 935.00 in Ep Emerging Markets on September 3, 2024 and sell it today you would earn a total of 89.00 from holding Ep Emerging Markets or generate 9.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intermediate Term Bond Fund vs. Ep Emerging Markets
Performance |
| Timeline |
| Intermediate Term Bond |
| Ep Emerging Markets |
Intermediate Term and Ep Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intermediate Term and Ep Emerging
The main advantage of trading using opposite Intermediate Term and Ep Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intermediate Term 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.| Intermediate Term vs. Ep Emerging Markets | Intermediate Term vs. Barings Emerging Markets | Intermediate Term vs. Nasdaq 100 2x Strategy | Intermediate Term vs. Legg Mason Partners |
| Ep Emerging vs. Franklin Mutual Global | Ep Emerging vs. Templeton Growth Fund | Ep Emerging vs. Franklin Real Estate | Ep Emerging vs. HUMANA INC |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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