Correlation Between Ep Emerging and Old Westbury
Can any of the company-specific risk be diversified away by investing in both Ep Emerging and Old Westbury 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 Old Westbury 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 Old Westbury Small, you can compare the effects of market volatilities on Ep Emerging and Old Westbury 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 Old Westbury. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ep Emerging and Old Westbury.
Diversification Opportunities for Ep Emerging and Old Westbury
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between EPASX and Old is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Ep Emerging Markets and Old Westbury Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Old Westbury Small 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 Old Westbury. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Old Westbury Small has no effect on the direction of Ep Emerging i.e., Ep Emerging and Old Westbury go up and down completely randomly.
Pair Corralation between Ep Emerging and Old Westbury
Assuming the 90 days horizon Ep Emerging Markets is expected to generate 0.94 times more return on investment than Old Westbury. However, Ep Emerging Markets is 1.07 times less risky than Old Westbury. It trades about 0.2 of its potential returns per unit of risk. Old Westbury Small is currently generating about 0.13 per unit of risk. If you would invest 1,066 in Ep Emerging Markets on June 9, 2025 and sell it today you would earn a total of 81.00 from holding Ep Emerging Markets or generate 7.6% 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. Old Westbury Small
Performance |
| Timeline |
| Ep Emerging Markets |
| Old Westbury Small |
Ep Emerging and Old Westbury Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ep Emerging and Old Westbury
The main advantage of trading using opposite Ep Emerging and Old Westbury positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ep Emerging position performs unexpectedly, Old Westbury 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 Old Westbury will offset losses from the drop in Old Westbury's long position.| Ep Emerging vs. Blackrock Science Technology | Ep Emerging vs. Putnam Global Technology | Ep Emerging vs. Invesco Technology Fund | Ep Emerging vs. Biotechnology Ultrasector Profund |
| Old Westbury vs. Angel Oak Multi Strategy | Old Westbury vs. Hartford Emerging Markets | Old Westbury vs. Doubleline Emerging Markets | Old Westbury vs. Western Assets Emerging |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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