Correlation Between Blackrock High and Ashmore Emerging
Can any of the company-specific risk be diversified away by investing in both Blackrock High 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 Blackrock High and Ashmore Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackrock High Yield and Ashmore Emerging Markets, you can compare the effects of market volatilities on Blackrock High 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 Blackrock High with a short position of Ashmore Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackrock High and Ashmore Emerging.
Diversification Opportunities for Blackrock High and Ashmore Emerging
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Blackrock and Ashmore is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock High Yield 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 Blackrock High 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 Blackrock High Yield 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 Blackrock High i.e., Blackrock High and Ashmore Emerging go up and down completely randomly.
Pair Corralation between Blackrock High and Ashmore Emerging
Assuming the 90 days horizon Blackrock High Yield is expected to generate 0.21 times more return on investment than Ashmore Emerging. However, Blackrock High Yield is 4.84 times less risky than Ashmore Emerging. It trades about 0.32 of its potential returns per unit of risk. Ashmore Emerging Markets is currently generating about -0.26 per unit of risk. If you would invest 712.00 in Blackrock High Yield on August 30, 2024 and sell it today you would earn a total of 7.00 from holding Blackrock High Yield or generate 0.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackrock High Yield vs. Ashmore Emerging Markets
Performance |
| Timeline |
| Blackrock High Yield |
| Ashmore Emerging Markets |
Blackrock High and Ashmore Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackrock High and Ashmore Emerging
The main advantage of trading using opposite Blackrock High and Ashmore Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackrock High 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.| Blackrock High vs. Nuveen Massachusetts Municipal | Blackrock High vs. Artisan High Income | Blackrock High vs. Maryland Tax Free Bond | Blackrock High vs. Sterling Capital Short |
| Ashmore Emerging vs. T Rowe Price | Ashmore Emerging vs. Wasatch Small Cap | Ashmore Emerging vs. Massmutual Premier Diversified | Ashmore Emerging vs. American Century Diversified |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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