Correlation Between Ep Emerging and Ladenburg Income

Can any of the company-specific risk be diversified away by investing in both Ep Emerging and Ladenburg Income 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 Ep Emerging and Ladenburg Income into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Ep Emerging Markets and Ladenburg Income Growth, you can compare the effects of market volatilities on Ep Emerging and Ladenburg Income 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 Ep Emerging with a short position of Ladenburg Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ep Emerging and Ladenburg Income.

Diversification Opportunities for Ep Emerging and Ladenburg Income

-0.07

Correlation Coefficient

Ep Emerging  Ladenburg Income

Good diversification

The 3 months correlation between EPEIX and Ladenburg is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Ep Emerging Markets and Ladenburg Income Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ladenburg Income Growth and Ep 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 Ep Emerging Markets are associated (or correlated) with Ladenburg Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ladenburg Income Growth has no effect on the direction of Ep Emerging i.e., Ep Emerging and Ladenburg Income go up and down completely randomly.

Pair Corralation between Ep Emerging and Ladenburg Income

Assuming the 90 days horizon Ep Emerging is expected to generate 1.23 times less return on investment than Ladenburg Income. In addition to that, Ep Emerging is 2.78 times more volatile than Ladenburg Income Growth. It trades about 0.05 of its total potential returns per unit of risk. Ladenburg Income Growth is currently generating about 0.16 per unit of volatility. If you would invest  1,318  in Ladenburg Income Growth on September 8, 2024 and sell it today you would earn a total of  49.00  from holding Ladenburg Income Growth or generate 3.72% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.46%
Values	Daily Returns

Ep Emerging Markets  vs.  Ladenburg Income Growth

Ep Emerging Markets

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Ep Emerging Markets are ranked lower than 3 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Ep Emerging is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Ladenburg Income Growth

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Ladenburg Income Growth are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Ladenburg Income is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Ep Emerging and Ladenburg Income

The main advantage of trading using opposite Ep Emerging and Ladenburg Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ep Emerging position performs unexpectedly, Ladenburg Income 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 Ladenburg Income will offset losses from the drop in Ladenburg Income's long position.

The idea behind Ep Emerging Markets and Ladenburg Income Growth pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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..