Correlation Between Brandes Separately and Brandes Emerging
Can any of the company-specific risk be diversified away by investing in both Brandes Separately 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 Brandes Separately and Brandes Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brandes Separately Managed and Brandes Emerging Markets, you can compare the effects of market volatilities on Brandes Separately 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 Brandes Separately with a short position of Brandes Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brandes Separately and Brandes Emerging.
Diversification Opportunities for Brandes Separately and Brandes Emerging
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Brandes and Brandes is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Brandes Separately Managed 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 Brandes Separately 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 Brandes Separately Managed 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 Brandes Separately i.e., Brandes Separately and Brandes Emerging go up and down completely randomly.
Pair Corralation between Brandes Separately and Brandes Emerging
Assuming the 90 days horizon Brandes Separately is expected to generate 6.55 times less return on investment than Brandes Emerging. But when comparing it to its historical volatility, Brandes Separately Managed is 4.76 times less risky than Brandes Emerging. It trades about 0.17 of its potential returns per unit of risk. Brandes Emerging Markets is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 1,042 in Brandes Emerging Markets on August 30, 2025 and sell it today you would earn a total of 135.00 from holding Brandes Emerging Markets or generate 12.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brandes Separately Managed vs. Brandes Emerging Markets
Performance |
| Timeline |
| Brandes Separately |
| Brandes Emerging Markets |
Brandes Separately and Brandes Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brandes Separately and Brandes Emerging
The main advantage of trading using opposite Brandes Separately and Brandes Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brandes Separately 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.| Brandes Separately vs. Calvert Global Energy | Brandes Separately vs. Fidelity Advisor Energy | Brandes Separately vs. Ivy Natural Resources | Brandes Separately vs. Icon Natural Resources |
| Brandes Emerging vs. Hennessy Bp Energy | Brandes Emerging vs. Invesco Energy Fund | Brandes Emerging vs. Ivy Natural Resources | Brandes Emerging vs. Icon Natural Resources |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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