Correlation Between AfricaRhodium ETF and E Media

Can any of the company-specific risk be diversified away by investing in both AfricaRhodium ETF and E Media 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 AfricaRhodium ETF and E Media into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between AfricaRhodium ETF and E Media Holdings, you can compare the effects of market volatilities on AfricaRhodium ETF and E Media 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 AfricaRhodium ETF with a short position of E Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of AfricaRhodium ETF and E Media.

Diversification Opportunities for AfricaRhodium ETF and E Media

0.0

Correlation Coefficient

AfricaRhodium ETF  E Media

Pay attention - limited upside

The 3 months correlation between AfricaRhodium and EMH is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AfricaRhodium ETF and E Media Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on E Media Holdings and AfricaRhodium ETF 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 AfricaRhodium ETF are associated (or correlated) with E Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of E Media Holdings has no effect on the direction of AfricaRhodium ETF i.e., AfricaRhodium ETF and E Media go up and down completely randomly.

Pair Corralation between AfricaRhodium ETF and E Media

If you would invest  37,732  in E Media Holdings on October 7, 2024 and sell it today you would lose (2,232) from holding E Media Holdings or give up 5.92% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

AfricaRhodium ETF  vs.  E Media Holdings

AfricaRhodium ETF

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days AfricaRhodium ETF has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, AfricaRhodium ETF is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

E Media Holdings

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in E Media Holdings are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical and fundamental indicators, E Media may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with AfricaRhodium ETF and E Media

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

The idea behind AfricaRhodium ETF and E Media Holdings 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.