Correlation Between Martin Currie and Foreign Bond

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

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

Diversification Opportunities for Martin Currie and Foreign Bond

-0.32

Correlation Coefficient

Martin Currie  Foreign Bond

Very good diversification

The 3 months correlation between Martin and Foreign is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Martin Currie Emerging and Foreign Bond Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Foreign Bond and Martin Currie 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 Martin Currie Emerging are associated (or correlated) with Foreign Bond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Foreign Bond has no effect on the direction of Martin Currie i.e., Martin Currie and Foreign Bond go up and down completely randomly.

Pair Corralation between Martin Currie and Foreign Bond

Assuming the 90 days horizon Martin Currie Emerging is expected to generate 3.23 times more return on investment than Foreign Bond. However, Martin Currie is 3.23 times more volatile than Foreign Bond Fund. It trades about 0.16 of its potential returns per unit of risk. Foreign Bond Fund is currently generating about -0.05 per unit of risk. If you would invest  1,433  in Martin Currie Emerging on September 7, 2025 and sell it today you would earn a total of  158.00  from holding Martin Currie Emerging or generate 11.03% return on investment over 90 days.

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

Martin Currie Emerging  vs.  Foreign Bond Fund

Martin Currie Emerging

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Martin Currie Emerging are ranked lower than 13 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, Martin Currie may actually be approaching a critical reversion point that can send shares even higher in January 2026.

Foreign Bond

Risk-Adjusted Performance

Weakest

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

Pair Trading with Martin Currie and Foreign Bond

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

The idea behind Martin Currie Emerging and Foreign Bond Fund 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.

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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.