Correlation Between Johcm Emerging and Congress Large
Can any of the company-specific risk be diversified away by investing in both Johcm Emerging and Congress Large 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 Johcm Emerging and Congress Large into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Johcm Emerging Markets and Congress Large Cap, you can compare the effects of market volatilities on Johcm Emerging and Congress Large 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 Johcm Emerging with a short position of Congress Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Johcm Emerging and Congress Large.
Diversification Opportunities for Johcm Emerging and Congress Large
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Johcm and CONGRESS is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Johcm Emerging Markets and Congress Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Congress Large Cap and Johcm 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 Johcm Emerging Markets are associated (or correlated) with Congress Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Congress Large Cap has no effect on the direction of Johcm Emerging i.e., Johcm Emerging and Congress Large go up and down completely randomly.
Pair Corralation between Johcm Emerging and Congress Large
Assuming the 90 days horizon Johcm Emerging Markets is expected to generate 0.96 times more return on investment than Congress Large. However, Johcm Emerging Markets is 1.04 times less risky than Congress Large. It trades about 0.2 of its potential returns per unit of risk. Congress Large Cap is currently generating about 0.18 per unit of risk. If you would invest 1,290 in Johcm Emerging Markets on June 3, 2025 and sell it today you would earn a total of 107.00 from holding Johcm Emerging Markets or generate 8.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Johcm Emerging Markets vs. Congress Large Cap
Performance |
| Timeline |
| Johcm Emerging Markets |
| Congress Large Cap |
Johcm Emerging and Congress Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Johcm Emerging and Congress Large
The main advantage of trading using opposite Johcm Emerging and Congress Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Johcm Emerging position performs unexpectedly, Congress Large 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 Congress Large will offset losses from the drop in Congress Large's long position.| Johcm Emerging vs. Tswhgyldbdinstl | Johcm Emerging vs. Johcm Global Equity | Johcm Emerging vs. Johcm Emerging Markets | Johcm Emerging vs. Johcm International Select |
| Congress Large vs. Lord Abbett Diversified | Congress Large vs. Alphacentric Hedged Market | Congress Large vs. Johcm Emerging Markets | Congress Large vs. Ep Emerging Markets |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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