Correlation Between Evaluator Tactically and Ep Emerging

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

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

Diversification Opportunities for Evaluator Tactically and Ep Emerging

0.95

Correlation Coefficient

Evaluator Tactically  Ep Emerging

Almost no diversification

The 3 months correlation between Evaluator and EPASX is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Evaluator Tactically Managed 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 Evaluator Tactically 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 Evaluator Tactically Managed 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 Evaluator Tactically i.e., Evaluator Tactically and Ep Emerging go up and down completely randomly.

Pair Corralation between Evaluator Tactically and Ep Emerging

Assuming the 90 days horizon Evaluator Tactically is expected to generate 1.98 times less return on investment than Ep Emerging. But when comparing it to its historical volatility, Evaluator Tactically Managed is 1.64 times less risky than Ep Emerging. It trades about 0.21 of its potential returns per unit of risk. Ep Emerging Markets is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest  1,035  in Ep Emerging Markets on May 19, 2025 and sell it today you would earn a total of  102.00  from holding Ep Emerging Markets or generate 9.86% return on investment over 90 days.

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

Evaluator Tactically Managed  vs.  Ep Emerging Markets

Evaluator Tactically

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Evaluator Tactically Managed are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Evaluator Tactically is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Ep Emerging Markets

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Ep Emerging Markets are ranked lower than 20 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Ep Emerging may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Evaluator Tactically and Ep Emerging

The main advantage of trading using opposite Evaluator Tactically and Ep Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evaluator Tactically 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.

The idea behind Evaluator Tactically Managed and Ep Emerging Markets 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 Global Correlations module to find global opportunities by holding instruments from different markets.