Correlation Between Alliancebernstein and Ashmore Emerging
Can any of the company-specific risk be diversified away by investing in both Alliancebernstein and Ashmore 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 Alliancebernstein and Ashmore Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alliancebernstein National Municipal and Ashmore Emerging Markets, you can compare the effects of market volatilities on Alliancebernstein and Ashmore 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 Alliancebernstein with a short position of Ashmore Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alliancebernstein and Ashmore Emerging.
Diversification Opportunities for Alliancebernstein and Ashmore Emerging
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Alliancebernstein and Ashmore is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Alliancebernstein National Mun and Ashmore Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ashmore Emerging Markets and Alliancebernstein 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 Alliancebernstein National Municipal are associated (or correlated) with Ashmore Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ashmore Emerging Markets has no effect on the direction of Alliancebernstein i.e., Alliancebernstein and Ashmore Emerging go up and down completely randomly.
Pair Corralation between Alliancebernstein and Ashmore Emerging
Considering the 90-day investment horizon Alliancebernstein National Municipal is expected to generate 2.09 times more return on investment than Ashmore Emerging. However, Alliancebernstein is 2.09 times more volatile than Ashmore Emerging Markets. It trades about 0.08 of its potential returns per unit of risk. Ashmore Emerging Markets is currently generating about -0.07 per unit of risk. If you would invest 1,132 in Alliancebernstein National Municipal on September 12, 2024 and sell it today you would earn a total of 10.00 from holding Alliancebernstein National Municipal or generate 0.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Alliancebernstein National Mun vs. Ashmore Emerging Markets
Performance |
| Timeline |
| Alliancebernstein |
| Ashmore Emerging Markets |
Alliancebernstein and Ashmore Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alliancebernstein and Ashmore Emerging
The main advantage of trading using opposite Alliancebernstein and Ashmore Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alliancebernstein position performs unexpectedly, Ashmore 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 Ashmore Emerging will offset losses from the drop in Ashmore Emerging's long position.| Alliancebernstein vs. Oxford Lane Capital | Alliancebernstein vs. Orchid Island Capital | Alliancebernstein vs. Guggenheim Strategic Opportunities | Alliancebernstein vs. Stone Harbor Emerging |
| Ashmore Emerging vs. Dreyfus Natural Resources | Ashmore Emerging vs. Franklin Natural Resources | Ashmore Emerging vs. Invesco Energy Fund | Ashmore Emerging vs. Calvert Global Energy |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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