Correlation Between Intech Managed and Henderson Emerging
Can any of the company-specific risk be diversified away by investing in both Intech Managed and Henderson 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 Intech Managed and Henderson Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intech Managed Volatility and Henderson Emerging Markets, you can compare the effects of market volatilities on Intech Managed and Henderson 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 Intech Managed with a short position of Henderson Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intech Managed and Henderson Emerging.
Diversification Opportunities for Intech Managed and Henderson Emerging
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Intech and Henderson is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Intech Managed Volatility and Henderson Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Henderson Emerging and Intech Managed 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 Intech Managed Volatility are associated (or correlated) with Henderson Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Henderson Emerging has no effect on the direction of Intech Managed i.e., Intech Managed and Henderson Emerging go up and down completely randomly.
Pair Corralation between Intech Managed and Henderson Emerging
Assuming the 90 days horizon Intech Managed Volatility is expected to generate 0.95 times more return on investment than Henderson Emerging. However, Intech Managed Volatility is 1.05 times less risky than Henderson Emerging. It trades about 0.03 of its potential returns per unit of risk. Henderson Emerging Markets is currently generating about -0.04 per unit of risk. If you would invest 1,186 in Intech Managed Volatility on September 25, 2024 and sell it today you would earn a total of 13.00 from holding Intech Managed Volatility or generate 1.1% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Intech Managed Volatility vs. Henderson Emerging Markets
Performance |
Timeline |
Intech Managed Volatility |
Henderson Emerging |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Intech Managed and Henderson Emerging Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Intech Managed and Henderson Emerging
The main advantage of trading using opposite Intech Managed and Henderson Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intech Managed position performs unexpectedly, Henderson 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 Henderson Emerging will offset losses from the drop in Henderson Emerging's long position.Intech Managed vs. Classic Value Fund | Intech Managed vs. Legg Mason Bw | Intech Managed vs. Strategic Income Opportunities | Intech Managed vs. Us Global Leaders |
Henderson Emerging vs. Allianzgi Health Sciences | Henderson Emerging vs. Live Oak Health | Henderson Emerging vs. Fidelity Advisor Health | Henderson Emerging vs. Deutsche Health And |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |