Correlation Between Ab Select and Ep Emerging
Can any of the company-specific risk be diversified away by investing in both Ab Select 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 Ab Select and Ep Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab Select Equity and Ep Emerging Markets, you can compare the effects of market volatilities on Ab Select 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 Ab Select with a short position of Ep Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Select and Ep Emerging.
Diversification Opportunities for Ab Select and Ep Emerging
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between AUUIX and EPASX is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Ab Select Equity 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 Ab Select 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 Ab Select Equity 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 Ab Select i.e., Ab Select and Ep Emerging go up and down completely randomly.
Pair Corralation between Ab Select and Ep Emerging
Assuming the 90 days horizon Ab Select Equity is expected to generate 0.96 times more return on investment than Ep Emerging. However, Ab Select Equity is 1.04 times less risky than Ep Emerging. It trades about 0.23 of its potential returns per unit of risk. Ep Emerging Markets is currently generating about 0.18 per unit of risk. If you would invest 2,247 in Ab Select Equity on June 8, 2025 and sell it today you would earn a total of 187.00 from holding Ab Select Equity or generate 8.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab Select Equity vs. Ep Emerging Markets
Performance |
| Timeline |
| Ab Select Equity |
| Ep Emerging Markets |
Ab Select and Ep Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Select and Ep Emerging
The main advantage of trading using opposite Ab Select and Ep Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Select 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.| Ab Select vs. Ab Global E | Ab Select vs. Ab Global E | Ab Select vs. Ab Global E | Ab Select vs. Ab All Market |
| Ep Emerging vs. Barings Active Short | Ep Emerging vs. Victory Diversified Stock | Ep Emerging vs. Astor Longshort Fund | Ep Emerging vs. Western Asset Short |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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