Correlation Between Lsv Emerging and Swan Defined

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

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

Diversification Opportunities for Lsv Emerging and Swan Defined

0.0

Correlation Coefficient

Lsv Emerging  Swan Defined

Pay attention - limited upside

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

Pair Corralation between Lsv Emerging and Swan Defined

If you would invest (100.00) in Swan Defined Risk on February 3, 2025 and sell it today you would earn a total of  100.00  from holding Swan Defined Risk or generate -100.0% return on investment over 90 days.

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

Lsv Emerging Markets  vs.  Swan Defined Risk

Lsv Emerging Markets

Risk-Adjusted Performance

OK

Over the last 90 days Lsv Emerging Markets has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Lsv Emerging is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Swan Defined Risk

Risk-Adjusted Performance

Very Weak

Over the last 90 days Swan Defined Risk has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Swan Defined is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Lsv Emerging and Swan Defined

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

The idea behind Lsv Emerging Markets and Swan Defined Risk 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 Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.