Correlation Between Martin Currie and MicroSectors FANG

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

By analyzing existing cross correlation between Martin Currie Sustainable and MicroSectors FANG ETN, you can compare the effects of market volatilities on Martin Currie and MicroSectors FANG 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 MicroSectors FANG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Martin Currie and MicroSectors FANG.

Diversification Opportunities for Martin Currie and MicroSectors FANG

0.29

Correlation Coefficient

Martin Currie  MicroSectors FANG

Modest diversification

The 3 months correlation between Martin and MicroSectors is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Martin Currie Sustainable and MicroSectors FANG ETN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MicroSectors FANG ETN 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 Sustainable are associated (or correlated) with MicroSectors FANG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MicroSectors FANG ETN has no effect on the direction of Martin Currie i.e., Martin Currie and MicroSectors FANG go up and down completely randomly.

Pair Corralation between Martin Currie and MicroSectors FANG

Given the investment horizon of 90 days Martin Currie is expected to generate 7.09 times less return on investment than MicroSectors FANG. But when comparing it to its historical volatility, Martin Currie Sustainable is 1.14 times less risky than MicroSectors FANG. It trades about 0.03 of its potential returns per unit of risk. MicroSectors FANG ETN is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  5,890  in MicroSectors FANG ETN on May 22, 2025 and sell it today you would earn a total of  689.00  from holding MicroSectors FANG ETN or generate 11.7% return on investment over 90 days.

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

Martin Currie Sustainable  vs.  MicroSectors FANG ETN

Martin Currie Sustainable

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Martin Currie Sustainable are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, Martin Currie is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

MicroSectors FANG ETN

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in MicroSectors FANG ETN are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak technical and fundamental indicators, MicroSectors FANG may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Martin Currie and MicroSectors FANG

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

The idea behind Martin Currie Sustainable and MicroSectors FANG ETN 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 CEOs Directory module to screen CEOs from public companies around the world.