Correlation Between Mairs Power and Brandes Emerging
Can any of the company-specific risk be diversified away by investing in both Mairs Power and Brandes 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 Mairs Power and Brandes Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mairs Power Balanced and Brandes Emerging Markets, you can compare the effects of market volatilities on Mairs Power and Brandes 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 Mairs Power with a short position of Brandes Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mairs Power and Brandes Emerging.
Diversification Opportunities for Mairs Power and Brandes Emerging
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mairs and Brandes is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Mairs Power Balanced and Brandes Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brandes Emerging Markets and Mairs Power 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 Mairs Power Balanced are associated (or correlated) with Brandes Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brandes Emerging Markets has no effect on the direction of Mairs Power i.e., Mairs Power and Brandes Emerging go up and down completely randomly.
Pair Corralation between Mairs Power and Brandes Emerging
Assuming the 90 days horizon Mairs Power Balanced is expected to under-perform the Brandes Emerging. But the mutual fund apears to be less risky and, when comparing its historical volatility, Mairs Power Balanced is 1.79 times less risky than Brandes Emerging. The mutual fund trades about -0.03 of its potential returns per unit of risk. The Brandes Emerging Markets is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,152 in Brandes Emerging Markets on September 6, 2025 and sell it today you would earn a total of 53.00 from holding Brandes Emerging Markets or generate 4.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mairs Power Balanced vs. Brandes Emerging Markets
Performance |
| Timeline |
| Mairs Power Balanced |
| Brandes Emerging Markets |
Mairs Power and Brandes Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mairs Power and Brandes Emerging
The main advantage of trading using opposite Mairs Power and Brandes Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mairs Power position performs unexpectedly, Brandes 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 Brandes Emerging will offset losses from the drop in Brandes Emerging's long position.| Mairs Power vs. Siit Emerging Markets | Mairs Power vs. Embark Commodity Strategy | Mairs Power vs. Rbc Emerging Markets | Mairs Power vs. Hartford Schroders Emerging |
| Brandes Emerging vs. Diamond Hill Long Short | Brandes Emerging vs. Short Intermediate Bond Fund | Brandes Emerging vs. Virtus Multi Sector Short | Brandes Emerging vs. Ultra Short Fixed Income |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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