Correlation Between Ep Emerging and Horizon Active
Can any of the company-specific risk be diversified away by investing in both Ep Emerging and Horizon Active 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 Ep Emerging and Horizon Active into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ep Emerging Markets and Horizon Active Asset, you can compare the effects of market volatilities on Ep Emerging and Horizon Active 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 Ep Emerging with a short position of Horizon Active. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ep Emerging and Horizon Active.
Diversification Opportunities for Ep Emerging and Horizon Active
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between EPASX and Horizon is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Ep Emerging Markets and Horizon Active Asset in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Horizon Active Asset and Ep 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 Ep Emerging Markets are associated (or correlated) with Horizon Active. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Horizon Active Asset has no effect on the direction of Ep Emerging i.e., Ep Emerging and Horizon Active go up and down completely randomly.
Pair Corralation between Ep Emerging and Horizon Active
Assuming the 90 days horizon Ep Emerging Markets is expected to generate 0.96 times more return on investment than Horizon Active. However, Ep Emerging Markets is 1.05 times less risky than Horizon Active. It trades about 0.29 of its potential returns per unit of risk. Horizon Active Asset is currently generating about 0.19 per unit of risk. If you would invest 1,036 in Ep Emerging Markets on May 27, 2025 and sell it today you would earn a total of 119.00 from holding Ep Emerging Markets or generate 11.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ep Emerging Markets vs. Horizon Active Asset
Performance |
| Timeline |
| Ep Emerging Markets |
| Horizon Active Asset |
Ep Emerging and Horizon Active Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ep Emerging and Horizon Active
The main advantage of trading using opposite Ep Emerging and Horizon Active positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ep Emerging position performs unexpectedly, Horizon Active 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 Horizon Active will offset losses from the drop in Horizon Active's long position.| Ep Emerging vs. T Rowe Price | Ep Emerging vs. Ab Bond Inflation | Ep Emerging vs. Ab Bond Inflation | Ep Emerging vs. Siit Emerging Markets |
| Horizon Active vs. Horizon Active Risk | Horizon Active vs. Horizon Active Risk | Horizon Active vs. Horizon Active Asset | Horizon Active vs. Horizon Active Dividend |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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