Correlation Between Ep Emerging and Siit Emerging
Can any of the company-specific risk be diversified away by investing in both Ep Emerging and Siit Emerging 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 Siit Emerging 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 Siit Emerging Markets, you can compare the effects of market volatilities on Ep Emerging and Siit Emerging 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 Siit Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ep Emerging and Siit Emerging.
Diversification Opportunities for Ep Emerging and Siit Emerging
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between EPASX and Siit is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Ep Emerging Markets and Siit Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siit Emerging Markets 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 Siit Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siit Emerging Markets has no effect on the direction of Ep Emerging i.e., Ep Emerging and Siit Emerging go up and down completely randomly.
Pair Corralation between Ep Emerging and Siit Emerging
Assuming the 90 days horizon Ep Emerging Markets is expected to generate 2.48 times more return on investment than Siit Emerging. However, Ep Emerging is 2.48 times more volatile than Siit Emerging Markets. It trades about 0.29 of its potential returns per unit of risk. Siit Emerging Markets is currently generating about 0.39 per unit of risk. If you would invest 1,038 in Ep Emerging Markets on May 28, 2025 and sell it today you would earn a total of 117.00 from holding Ep Emerging Markets or generate 11.27% 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. Siit Emerging Markets
Performance |
| Timeline |
| Ep Emerging Markets |
| Siit Emerging Markets |
Ep Emerging and Siit Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ep Emerging and Siit Emerging
The main advantage of trading using opposite Ep Emerging and Siit Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ep Emerging position performs unexpectedly, Siit Emerging 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 Siit Emerging will offset losses from the drop in Siit Emerging's long position.| Ep Emerging vs. Europac International Bond | Ep Emerging vs. Europac International Dividend | Ep Emerging vs. Investment Managers Series | Ep Emerging vs. Europac Gold Fund |
| Siit Emerging vs. Simt Multi Asset Accumulation | Siit Emerging vs. Saat Market Growth | Siit Emerging vs. Simt Real Return | Siit Emerging vs. Siit Screened World |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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