Correlation Between Ashmore Emerging and Ambrus Core
Can any of the company-specific risk be diversified away by investing in both Ashmore Emerging and Ambrus Core 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 Ambrus Core 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 Ambrus Core Bond, you can compare the effects of market volatilities on Ashmore Emerging and Ambrus Core 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 Ambrus Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ashmore Emerging and Ambrus Core.
Diversification Opportunities for Ashmore Emerging and Ambrus Core
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ashmore and Ambrus is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Ashmore Emerging Markets and Ambrus Core Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ambrus Core Bond 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 Ambrus Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ambrus Core Bond has no effect on the direction of Ashmore Emerging i.e., Ashmore Emerging and Ambrus Core go up and down completely randomly.
Pair Corralation between Ashmore Emerging and Ambrus Core
Assuming the 90 days horizon Ashmore Emerging Markets is expected to generate 2.26 times more return on investment than Ambrus Core. However, Ashmore Emerging is 2.26 times more volatile than Ambrus Core Bond. It trades about 0.22 of its potential returns per unit of risk. Ambrus Core Bond is currently generating about 0.12 per unit of risk. If you would invest 642.00 in Ashmore Emerging Markets on December 13, 2024 and sell it today you would earn a total of 13.00 from holding Ashmore Emerging Markets or generate 2.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ashmore Emerging Markets vs. Ambrus Core Bond
Performance |
| Timeline |
| Ashmore Emerging Markets |
| Ambrus Core Bond |
Ashmore Emerging and Ambrus Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ashmore Emerging and Ambrus Core
The main advantage of trading using opposite Ashmore Emerging and Ambrus Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ashmore Emerging position performs unexpectedly, Ambrus Core 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 Ambrus Core will offset losses from the drop in Ambrus Core's long position.| Ashmore Emerging vs. Icon Financial Fund | ||
| Ashmore Emerging vs. Financials Ultrasector Profund | ||
| Ashmore Emerging vs. Prudential Financial Services | ||
| Ashmore Emerging vs. Fidelity Advisor Financial |
| Ambrus Core vs. Ambrus Tax Conscious | ||
| Ambrus Core vs. Ambrus Tax Conscious | ||
| Ambrus Core vs. Invesco Short Term | ||
| Ambrus Core vs. The Hartford Global |
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 Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |