Correlation Between Atac Inflation and Ashmore Emerging
Can any of the company-specific risk be diversified away by investing in both Atac Inflation 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 Atac Inflation and Ashmore Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atac Inflation Rotation and Ashmore Emerging Markets, you can compare the effects of market volatilities on Atac Inflation 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 Atac Inflation with a short position of Ashmore Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atac Inflation and Ashmore Emerging.
Diversification Opportunities for Atac Inflation and Ashmore Emerging
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Atac and Ashmore is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Atac Inflation Rotation 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 Atac Inflation 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 Atac Inflation Rotation 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 Atac Inflation i.e., Atac Inflation and Ashmore Emerging go up and down completely randomly.
Pair Corralation between Atac Inflation and Ashmore Emerging
Assuming the 90 days horizon Atac Inflation Rotation is expected to under-perform the Ashmore Emerging. But the mutual fund apears to be less risky and, when comparing its historical volatility, Atac Inflation Rotation is 1.2 times less risky than Ashmore Emerging. The mutual fund trades about -0.4 of its potential returns per unit of risk. The Ashmore Emerging Markets is currently generating about -0.21 of returns per unit of risk over similar time horizon. If you would invest 807.00 in Ashmore Emerging Markets on October 7, 2024 and sell it today you would lose (37.00) from holding Ashmore Emerging Markets or give up 4.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atac Inflation Rotation vs. Ashmore Emerging Markets
Performance |
| Timeline |
| Atac Inflation Rotation |
| Ashmore Emerging Markets |
Atac Inflation and Ashmore Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atac Inflation and Ashmore Emerging
The main advantage of trading using opposite Atac Inflation and Ashmore Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atac Inflation 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.| Atac Inflation vs. All Asset Fund | Atac Inflation vs. Pimco All Asset | Atac Inflation vs. All Asset Fund | Atac Inflation vs. Pimco All Asset |
| Ashmore Emerging vs. Cref Money Market | Ashmore Emerging vs. Voya Government Money | Ashmore Emerging vs. Ab Government Exchange | Ashmore Emerging vs. Hsbc Treasury Money |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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