Correlation Between Martin Currie and Democracy International
Can any of the company-specific risk be diversified away by investing in both Martin Currie and Democracy International 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 Martin Currie and Democracy International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Martin Currie Sustainable and Democracy International, you can compare the effects of market volatilities on Martin Currie and Democracy International 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 Martin Currie with a short position of Democracy International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Martin Currie and Democracy International.
Diversification Opportunities for Martin Currie and Democracy International
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Martin and Democracy is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Martin Currie Sustainable and Democracy International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Democracy International and Martin Currie 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 Martin Currie Sustainable are associated (or correlated) with Democracy International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Democracy International has no effect on the direction of Martin Currie i.e., Martin Currie and Democracy International go up and down completely randomly.
Pair Corralation between Martin Currie and Democracy International
Given the investment horizon of 90 days Martin Currie is expected to generate 2.25 times less return on investment than Democracy International. In addition to that, Martin Currie is 1.19 times more volatile than Democracy International. It trades about 0.04 of its total potential returns per unit of risk. Democracy International is currently generating about 0.09 per unit of volatility. If you would invest 2,597 in Democracy International on March 11, 2025 and sell it today you would earn a total of 232.00 from holding Democracy International or generate 8.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Martin Currie Sustainable vs. Democracy International
Performance |
| Timeline |
| Martin Currie Sustainable |
| Democracy International |
Martin Currie and Democracy International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Martin Currie and Democracy International
The main advantage of trading using opposite Martin Currie and Democracy International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Martin Currie position performs unexpectedly, Democracy International 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 Democracy International will offset losses from the drop in Democracy International's long position.| Martin Currie vs. BrandywineGLOBAL Dynamic | Martin Currie vs. First Trust Growth | Martin Currie vs. Invesco NASDAQ Future | Martin Currie vs. Burney Factor Rotation |
| Democracy International vs. SmartETFs Dividend Builder | Democracy International vs. ETF Series Solutions | Democracy International vs. SmartETFs Asia Pacific |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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