Correlation Between Ashmore Emerging and Scharf Global
Can any of the company-specific risk be diversified away by investing in both Ashmore Emerging and Scharf Global 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 Ashmore Emerging and Scharf Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ashmore Emerging Markets and Scharf Global Opportunity, you can compare the effects of market volatilities on Ashmore Emerging and Scharf Global 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 Ashmore Emerging with a short position of Scharf Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ashmore Emerging and Scharf Global.
Diversification Opportunities for Ashmore Emerging and Scharf Global
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Ashmore and Scharf is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Ashmore Emerging Markets and Scharf Global Opportunity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scharf Global Opportunity and Ashmore Emerging 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 Ashmore Emerging Markets are associated (or correlated) with Scharf Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scharf Global Opportunity has no effect on the direction of Ashmore Emerging i.e., Ashmore Emerging and Scharf Global go up and down completely randomly.
Pair Corralation between Ashmore Emerging and Scharf Global
Assuming the 90 days horizon Ashmore Emerging is expected to generate 1905.0 times less return on investment than Scharf Global. But when comparing it to its historical volatility, Ashmore Emerging Markets is 3.91 times less risky than Scharf Global. It trades about 0.0 of its potential returns per unit of risk. Scharf Global Opportunity is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 3,665 in Scharf Global Opportunity on August 30, 2024 and sell it today you would earn a total of 155.00 from holding Scharf Global Opportunity or generate 4.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ashmore Emerging Markets vs. Scharf Global Opportunity
Performance |
| Timeline |
| Ashmore Emerging Markets |
| Scharf Global Opportunity |
Ashmore Emerging and Scharf Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ashmore Emerging and Scharf Global
The main advantage of trading using opposite Ashmore Emerging and Scharf Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ashmore Emerging position performs unexpectedly, Scharf Global 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 Scharf Global will offset losses from the drop in Scharf Global's long position.| Ashmore Emerging vs. Scharf Global Opportunity | Ashmore Emerging vs. Massmutual Premier Global | Ashmore Emerging vs. Mirova Global Green | Ashmore Emerging vs. Artisan Global Unconstrained |
| Scharf Global vs. American Funds Retirement | Scharf Global vs. Franklin Moderate Allocation | Scharf Global vs. Franklin Lifesmart Retirement | Scharf Global vs. Lifestyle Ii Moderate |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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