Correlation Between Ashmore Emerging and Jhancock Diversified
Can any of the company-specific risk be diversified away by investing in both Ashmore Emerging and Jhancock Diversified 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 Jhancock Diversified 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 Jhancock Diversified Macro, you can compare the effects of market volatilities on Ashmore Emerging and Jhancock Diversified 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 Jhancock Diversified. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ashmore Emerging and Jhancock Diversified.
Diversification Opportunities for Ashmore Emerging and Jhancock Diversified
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ashmore and Jhancock is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Ashmore Emerging Markets and Jhancock Diversified Macro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jhancock Diversified 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 Jhancock Diversified. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jhancock Diversified has no effect on the direction of Ashmore Emerging i.e., Ashmore Emerging and Jhancock Diversified go up and down completely randomly.
Pair Corralation between Ashmore Emerging and Jhancock Diversified
Assuming the 90 days horizon Ashmore Emerging is expected to generate 4.53 times less return on investment than Jhancock Diversified. But when comparing it to its historical volatility, Ashmore Emerging Markets is 3.12 times less risky than Jhancock Diversified. It trades about 0.16 of its potential returns per unit of risk. Jhancock Diversified Macro is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 889.00 in Jhancock Diversified Macro on September 12, 2024 and sell it today you would earn a total of 22.00 from holding Jhancock Diversified Macro or generate 2.47% 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. Jhancock Diversified Macro
Performance |
| Timeline |
| Ashmore Emerging Markets |
| Jhancock Diversified |
Ashmore Emerging and Jhancock Diversified Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ashmore Emerging and Jhancock Diversified
The main advantage of trading using opposite Ashmore Emerging and Jhancock Diversified positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ashmore Emerging position performs unexpectedly, Jhancock Diversified 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 Jhancock Diversified will offset losses from the drop in Jhancock Diversified's long position.| Ashmore Emerging vs. T Rowe Price | Ashmore Emerging vs. Versatile Bond Portfolio | Ashmore Emerging vs. T Rowe Price | Ashmore Emerging vs. Alliancebernstein Bond |
| Jhancock Diversified vs. Sentinel Small Pany | Jhancock Diversified vs. Blackrock Sm Cap | Jhancock Diversified vs. Tiaa Cref Small Cap Blend | Jhancock Diversified vs. Davenport Small Cap |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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