Correlation Between Ep Emerging and Salient Alternative
Can any of the company-specific risk be diversified away by investing in both Ep Emerging and Salient Alternative 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 Salient Alternative 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 Salient Alternative Beta, you can compare the effects of market volatilities on Ep Emerging and Salient Alternative 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 Salient Alternative. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ep Emerging and Salient Alternative.
Diversification Opportunities for Ep Emerging and Salient Alternative
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between EPASX and Salient is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Ep Emerging Markets and Salient Alternative Beta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Salient Alternative Beta 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 Salient Alternative. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Salient Alternative Beta has no effect on the direction of Ep Emerging i.e., Ep Emerging and Salient Alternative go up and down completely randomly.
Pair Corralation between Ep Emerging and Salient Alternative
Assuming the 90 days horizon Ep Emerging Markets is expected to generate 1.17 times more return on investment than Salient Alternative. However, Ep Emerging is 1.17 times more volatile than Salient Alternative Beta. It trades about 0.18 of its potential returns per unit of risk. Salient Alternative Beta is currently generating about 0.19 per unit of risk. If you would invest 1,066 in Ep Emerging Markets on June 8, 2025 and sell it today you would earn a total of 71.00 from holding Ep Emerging Markets or generate 6.66% 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. Salient Alternative Beta
Performance |
| Timeline |
| Ep Emerging Markets |
| Salient Alternative Beta |
Ep Emerging and Salient Alternative Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ep Emerging and Salient Alternative
The main advantage of trading using opposite Ep Emerging and Salient Alternative positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ep Emerging position performs unexpectedly, Salient Alternative 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 Salient Alternative will offset losses from the drop in Salient Alternative's long position.| Ep Emerging vs. Barings Active Short | Ep Emerging vs. Victory Diversified Stock | Ep Emerging vs. Astor Longshort Fund | Ep Emerging vs. Western Asset Short |
| Salient Alternative vs. Ambrus Core Bond | Salient Alternative vs. Artisan High Income | Salient Alternative vs. Ab Bond Inflation | Salient Alternative vs. Franklin Adjustable Government |
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 Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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