Correlation Between Ep Emerging and Simt Multi-asset
Can any of the company-specific risk be diversified away by investing in both Ep Emerging and Simt Multi-asset 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 Simt Multi-asset 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 Simt Multi Asset Capital, you can compare the effects of market volatilities on Ep Emerging and Simt Multi-asset 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 Simt Multi-asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ep Emerging and Simt Multi-asset.
Diversification Opportunities for Ep Emerging and Simt Multi-asset
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between EPASX and Simt is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Ep Emerging Markets and Simt Multi Asset Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simt Multi 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 Simt Multi-asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simt Multi Asset has no effect on the direction of Ep Emerging i.e., Ep Emerging and Simt Multi-asset go up and down completely randomly.
Pair Corralation between Ep Emerging and Simt Multi-asset
Assuming the 90 days horizon Ep Emerging Markets is expected to generate 4.35 times more return on investment than Simt Multi-asset. However, Ep Emerging is 4.35 times more volatile than Simt Multi Asset Capital. It trades about 0.34 of its potential returns per unit of risk. Simt Multi Asset Capital is currently generating about 0.35 per unit of risk. If you would invest 977.00 in Ep Emerging Markets on April 22, 2025 and sell it today you would earn a total of 115.00 from holding Ep Emerging Markets or generate 11.77% 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. Simt Multi Asset Capital
Performance |
| Timeline |
| Ep Emerging Markets |
| Simt Multi Asset |
Ep Emerging and Simt Multi-asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ep Emerging and Simt Multi-asset
The main advantage of trading using opposite Ep Emerging and Simt Multi-asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ep Emerging position performs unexpectedly, Simt Multi-asset 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 Simt Multi-asset will offset losses from the drop in Simt Multi-asset's long position.| Ep Emerging vs. Dunham High Yield | Ep Emerging vs. Janus High Yield Fund | Ep Emerging vs. Pax High Yield | Ep Emerging vs. Msift High Yield |
| Simt Multi-asset vs. Science Technology Fund | Simt Multi-asset vs. Columbia Global Technology | Simt Multi-asset vs. Firsthand Technology Opportunities | Simt Multi-asset vs. Invesco Technology Fund |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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