Correlation Between Calvert Developed and Ashmore Emerging
Can any of the company-specific risk be diversified away by investing in both Calvert Developed 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 Calvert Developed and Ashmore Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calvert Developed Market and Ashmore Emerging Markets, you can compare the effects of market volatilities on Calvert Developed 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 Calvert Developed with a short position of Ashmore Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Developed and Ashmore Emerging.
Diversification Opportunities for Calvert Developed and Ashmore Emerging
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Calvert and Ashmore is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Developed Market 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 Calvert Developed 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 Calvert Developed Market 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 Calvert Developed i.e., Calvert Developed and Ashmore Emerging go up and down completely randomly.
Pair Corralation between Calvert Developed and Ashmore Emerging
Assuming the 90 days horizon Calvert Developed Market is expected to generate 1.98 times more return on investment than Ashmore Emerging. However, Calvert Developed is 1.98 times more volatile than Ashmore Emerging Markets. It trades about 0.04 of its potential returns per unit of risk. Ashmore Emerging Markets is currently generating about 0.06 per unit of risk. If you would invest 2,537 in Calvert Developed Market on October 14, 2024 and sell it today you would earn a total of 438.00 from holding Calvert Developed Market or generate 17.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calvert Developed Market vs. Ashmore Emerging Markets
Performance |
| Timeline |
| Calvert Developed Market |
| Ashmore Emerging Markets |
Calvert Developed and Ashmore Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert Developed and Ashmore Emerging
The main advantage of trading using opposite Calvert Developed and Ashmore Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Developed 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.| Calvert Developed vs. Calvert Large Cap | Calvert Developed vs. Calvert Large Cap | Calvert Developed vs. Calvert Mid Cap | Calvert Developed vs. Calvert Short Duration |
| Ashmore Emerging vs. Fidelity New Markets | Ashmore Emerging vs. Rbc Emerging Markets | Ashmore Emerging vs. Locorr Market Trend | Ashmore Emerging vs. Calvert Developed Market |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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