Correlation Between EMQQ Emerging and JHMT
Can any of the company-specific risk be diversified away by investing in both EMQQ Emerging and JHMT 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 EMQQ Emerging and JHMT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EMQQ The Emerging and JHMT, you can compare the effects of market volatilities on EMQQ Emerging and JHMT 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 EMQQ Emerging with a short position of JHMT. Check out your portfolio center. Please also check ongoing floating volatility patterns of EMQQ Emerging and JHMT.
Diversification Opportunities for EMQQ Emerging and JHMT
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between EMQQ and JHMT is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding EMQQ The Emerging and JHMT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JHMT and EMQQ 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 EMQQ The Emerging are associated (or correlated) with JHMT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JHMT has no effect on the direction of EMQQ Emerging i.e., EMQQ Emerging and JHMT go up and down completely randomly.
Pair Corralation between EMQQ Emerging and JHMT
If you would invest 3,186 in EMQQ The Emerging on February 7, 2024 and sell it today you would earn a total of 317.00 from holding EMQQ The Emerging or generate 9.95% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
EMQQ The Emerging vs. JHMT
Performance |
Timeline |
EMQQ The Emerging |
JHMT |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
EMQQ Emerging and JHMT Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with EMQQ Emerging and JHMT
The main advantage of trading using opposite EMQQ Emerging and JHMT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EMQQ Emerging position performs unexpectedly, JHMT 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 JHMT will offset losses from the drop in JHMT's long position.EMQQ Emerging vs. Hartford Multifactor Equity | EMQQ Emerging vs. Hartford Multifactor Developed | EMQQ Emerging vs. Morningstar Unconstrained Allocation | EMQQ Emerging vs. Via Renewables |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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