Correlation Between Asg Global and Ep Emerging
Can any of the company-specific risk be diversified away by investing in both Asg Global 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 Asg Global and Ep Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asg Global Alternatives and Ep Emerging Markets, you can compare the effects of market volatilities on Asg Global 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 Asg Global with a short position of Ep Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asg Global and Ep Emerging.
Diversification Opportunities for Asg Global and Ep Emerging
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Asg and EPEIX is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Asg Global Alternatives 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 Asg Global 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 Asg Global Alternatives 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 Asg Global i.e., Asg Global and Ep Emerging go up and down completely randomly.
Pair Corralation between Asg Global and Ep Emerging
Assuming the 90 days horizon Asg Global Alternatives is expected to generate 0.52 times more return on investment than Ep Emerging. However, Asg Global Alternatives is 1.92 times less risky than Ep Emerging. It trades about 0.35 of its potential returns per unit of risk. Ep Emerging Markets is currently generating about -0.14 per unit of risk. If you would invest 1,056 in Asg Global Alternatives on October 25, 2024 and sell it today you would earn a total of 20.00 from holding Asg Global Alternatives or generate 1.89% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Asg Global Alternatives vs. Ep Emerging Markets
Performance |
Timeline |
Asg Global Alternatives |
Ep Emerging Markets |
Asg Global and Ep Emerging Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Asg Global and Ep Emerging
The main advantage of trading using opposite Asg Global and Ep Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asg Global 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.Asg Global vs. Fulcrum Diversified Absolute | Asg Global vs. Guggenheim Diversified Income | Asg Global vs. Delaware Limited Term Diversified | Asg Global vs. Davenport Small Cap |
Ep Emerging vs. Red Oak Technology | Ep Emerging vs. Icon Information Technology | Ep Emerging vs. Icon Information Technology | Ep Emerging vs. Vanguard Information Technology |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
CEOs Directory Screen CEOs from public companies around the world | |
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |