Correlation Between Ashmore Emerging and Nt International
Can any of the company-specific risk be diversified away by investing in both Ashmore Emerging and Nt International 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 Nt International 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 Nt International Small Mid, you can compare the effects of market volatilities on Ashmore Emerging and Nt International 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 Nt International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ashmore Emerging and Nt International.
Diversification Opportunities for Ashmore Emerging and Nt International
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Ashmore and ANTMX is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Ashmore Emerging Markets and Nt International Small Mid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nt International Small 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 Nt International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nt International Small has no effect on the direction of Ashmore Emerging i.e., Ashmore Emerging and Nt International go up and down completely randomly.
Pair Corralation between Ashmore Emerging and Nt International
Assuming the 90 days horizon Ashmore Emerging Markets is expected to generate 0.17 times more return on investment than Nt International. However, Ashmore Emerging Markets is 5.86 times less risky than Nt International. It trades about 0.09 of its potential returns per unit of risk. Nt International Small Mid is currently generating about -0.15 per unit of risk. If you would invest 574.00 in Ashmore Emerging Markets on September 19, 2024 and sell it today you would earn a total of 2.00 from holding Ashmore Emerging Markets or generate 0.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ashmore Emerging Markets vs. Nt International Small Mid
Performance |
| Timeline |
| Ashmore Emerging Markets |
| Nt International Small |
Ashmore Emerging and Nt International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ashmore Emerging and Nt International
The main advantage of trading using opposite Ashmore Emerging and Nt International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ashmore Emerging position performs unexpectedly, Nt International 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 Nt International will offset losses from the drop in Nt International's long position.| Ashmore Emerging vs. Ashmore Emerging Markets | Ashmore Emerging vs. Ashmore Emerging Markets | Ashmore Emerging vs. Ashmore Emerging Markets | Ashmore Emerging vs. Ashmore Emerging Markets |
| Nt International vs. Mid Cap Value | Nt International vs. Equity Growth Fund | Nt International vs. Income Growth Fund | Nt International vs. Diversified Bond Fund |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Stocks Directory Find actively traded stocks across global markets | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |