Correlation Between Brandes Emerging and Portfolio
Can any of the company-specific risk be diversified away by investing in both Brandes Emerging and Portfolio 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 Brandes Emerging and Portfolio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brandes Emerging Markets and Portfolio 21 Global, you can compare the effects of market volatilities on Brandes Emerging and Portfolio 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 Brandes Emerging with a short position of Portfolio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brandes Emerging and Portfolio.
Diversification Opportunities for Brandes Emerging and Portfolio
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Brandes and Portfolio is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Brandes Emerging Markets and Portfolio 21 Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Portfolio 21 Global and Brandes 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 Brandes Emerging Markets are associated (or correlated) with Portfolio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Portfolio 21 Global has no effect on the direction of Brandes Emerging i.e., Brandes Emerging and Portfolio go up and down completely randomly.
Pair Corralation between Brandes Emerging and Portfolio
Assuming the 90 days horizon Brandes Emerging Markets is expected to generate 1.2 times more return on investment than Portfolio. However, Brandes Emerging is 1.2 times more volatile than Portfolio 21 Global. It trades about 0.21 of its potential returns per unit of risk. Portfolio 21 Global is currently generating about 0.09 per unit of risk. If you would invest 1,064 in Brandes Emerging Markets on August 29, 2025 and sell it today you would earn a total of 125.00 from holding Brandes Emerging Markets or generate 11.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brandes Emerging Markets vs. Portfolio 21 Global
Performance |
| Timeline |
| Brandes Emerging Markets |
| Portfolio 21 Global |
Brandes Emerging and Portfolio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brandes Emerging and Portfolio
The main advantage of trading using opposite Brandes Emerging and Portfolio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brandes Emerging position performs unexpectedly, Portfolio 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 Portfolio will offset losses from the drop in Portfolio's long position.| Brandes Emerging vs. Cref Money Market | Brandes Emerging vs. Schwab Government Money | Brandes Emerging vs. Prudential Government Money | Brandes Emerging vs. Voya Government Money |
| Portfolio vs. Ashmore Emerging Markets | Portfolio vs. Martin Currie Emerging | Portfolio vs. Aqr Tm Emerging | Portfolio vs. Doubleline Emerging Markets |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |