Correlation Between Accelerate Arbitrage and IProfile Emerging
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By analyzing existing cross correlation between Accelerate Arbitrage and iProfile Emerging Markets, you can compare the effects of market volatilities on Accelerate Arbitrage and IProfile 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 Accelerate Arbitrage with a short position of IProfile Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Accelerate Arbitrage and IProfile Emerging.
Diversification Opportunities for Accelerate Arbitrage and IProfile Emerging
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Accelerate and IProfile is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Accelerate Arbitrage and iProfile Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iProfile Emerging Markets and Accelerate Arbitrage 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 Accelerate Arbitrage are associated (or correlated) with IProfile Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iProfile Emerging Markets has no effect on the direction of Accelerate Arbitrage i.e., Accelerate Arbitrage and IProfile Emerging go up and down completely randomly.
Pair Corralation between Accelerate Arbitrage and IProfile Emerging
Assuming the 90 days trading horizon Accelerate Arbitrage is expected to generate 2.49 times less return on investment than IProfile Emerging. But when comparing it to its historical volatility, Accelerate Arbitrage is 1.31 times less risky than IProfile Emerging. It trades about 0.17 of its potential returns per unit of risk. iProfile Emerging Markets is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 3,926 in iProfile Emerging Markets on April 23, 2025 and sell it today you would earn a total of 613.00 from holding iProfile Emerging Markets or generate 15.61% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Accelerate Arbitrage vs. iProfile Emerging Markets
Performance |
Timeline |
Accelerate Arbitrage |
iProfile Emerging Markets |
Accelerate Arbitrage and IProfile Emerging Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Accelerate Arbitrage and IProfile Emerging
The main advantage of trading using opposite Accelerate Arbitrage and IProfile Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Accelerate Arbitrage position performs unexpectedly, IProfile 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 IProfile Emerging will offset losses from the drop in IProfile Emerging's long position.The idea behind Accelerate Arbitrage and iProfile Emerging Markets pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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