Correlation Between IShares Exponential and Martin Currie

Can any of the company-specific risk be diversified away by investing in both IShares Exponential and Martin Currie 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 IShares Exponential and Martin Currie into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between iShares Exponential Technologies and Martin Currie Sustainable, you can compare the effects of market volatilities on IShares Exponential and Martin Currie 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 IShares Exponential with a short position of Martin Currie. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Exponential and Martin Currie.

Diversification Opportunities for IShares Exponential and Martin Currie

0.68

Correlation Coefficient

IShares Exponential  Martin Currie

Poor diversification

The 3 months correlation between IShares and Martin is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding iShares Exponential Technologi and Martin Currie Sustainable in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Martin Currie Sustainable and IShares Exponential 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 iShares Exponential Technologies are associated (or correlated) with Martin Currie. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Martin Currie Sustainable has no effect on the direction of IShares Exponential i.e., IShares Exponential and Martin Currie go up and down completely randomly.

Pair Corralation between IShares Exponential and Martin Currie

Allowing for the 90-day total investment horizon IShares Exponential is expected to generate 3.08 times less return on investment than Martin Currie. But when comparing it to its historical volatility, iShares Exponential Technologies is 1.09 times less risky than Martin Currie. It trades about 0.03 of its potential returns per unit of risk. Martin Currie Sustainable is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  1,322  in Martin Currie Sustainable on December 19, 2024 and sell it today you would earn a total of  84.00  from holding Martin Currie Sustainable or generate 6.35% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

iShares Exponential Technologi  vs.  Martin Currie Sustainable

iShares Exponential

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in iShares Exponential Technologies are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, IShares Exponential is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Martin Currie Sustainable

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Martin Currie Sustainable are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather conflicting basic indicators, Martin Currie may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with IShares Exponential and Martin Currie

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

The idea behind iShares Exponential Technologies and Martin Currie Sustainable 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.