Correlation Between Boston Partners and Ashmore Emerging
Can any of the company-specific risk be diversified away by investing in both Boston Partners 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 Boston Partners and Ashmore Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boston Partners Small and Ashmore Emerging Markets, you can compare the effects of market volatilities on Boston Partners 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 Boston Partners with a short position of Ashmore Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boston Partners and Ashmore Emerging.
Diversification Opportunities for Boston Partners and Ashmore Emerging
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Boston and ASHMORE is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Boston Partners Small 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 Boston Partners 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 Boston Partners Small 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 Boston Partners i.e., Boston Partners and Ashmore Emerging go up and down completely randomly.
Pair Corralation between Boston Partners and Ashmore Emerging
If you would invest 2,699 in Boston Partners Small on August 31, 2024 and sell it today you would earn a total of 259.00 from holding Boston Partners Small or generate 9.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Boston Partners Small vs. Ashmore Emerging Markets
Performance |
| Timeline |
| Boston Partners Small |
| Ashmore Emerging Markets |
Boston Partners and Ashmore Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boston Partners and Ashmore Emerging
The main advantage of trading using opposite Boston Partners and Ashmore Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boston Partners 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.| Boston Partners vs. Aggressive Investors 1 | Boston Partners vs. Buffalo Small Cap | Boston Partners vs. Rice Hall James | Boston Partners vs. Putnam Small Cap |
| Ashmore Emerging vs. Fidelity New Markets | Ashmore Emerging vs. Fidelity New Markets | Ashmore Emerging vs. Mfs Emerging Markets |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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