Correlation Between Ashmore Emerging and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both Ashmore Emerging and Cohen Steers 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 Cohen Steers 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 Cohen Steers Global, you can compare the effects of market volatilities on Ashmore Emerging and Cohen Steers 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 Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ashmore Emerging and Cohen Steers.
Diversification Opportunities for Ashmore Emerging and Cohen Steers
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ashmore and Cohen is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Ashmore Emerging Markets and Cohen Steers Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Global 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 Cohen Steers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cohen Steers Global has no effect on the direction of Ashmore Emerging i.e., Ashmore Emerging and Cohen Steers go up and down completely randomly.
Pair Corralation between Ashmore Emerging and Cohen Steers
Assuming the 90 days horizon Ashmore Emerging Markets is expected to generate 0.3 times more return on investment than Cohen Steers. However, Ashmore Emerging Markets is 3.29 times less risky than Cohen Steers. It trades about 0.13 of its potential returns per unit of risk. Cohen Steers Global is currently generating about 0.04 per unit of risk. If you would invest 482.00 in Ashmore Emerging Markets on September 3, 2024 and sell it today you would earn a total of 94.00 from holding Ashmore Emerging Markets or generate 19.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ashmore Emerging Markets vs. Cohen Steers Global
Performance |
| Timeline |
| Ashmore Emerging Markets |
| Cohen Steers Global |
Ashmore Emerging and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ashmore Emerging and Cohen Steers
The main advantage of trading using opposite Ashmore Emerging and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ashmore Emerging position performs unexpectedly, Cohen Steers 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 Cohen Steers will offset losses from the drop in Cohen Steers' long position.| Ashmore Emerging vs. Goldman Sachs Growth | Ashmore Emerging vs. Nationwide Growth Fund | Ashmore Emerging vs. Franklin Growth Opportunities | Ashmore Emerging vs. Smallcap Growth Fund |
| Cohen Steers vs. Qs Large Cap | Cohen Steers vs. Qs Global Equity | Cohen Steers vs. Touchstone Large Cap | Cohen Steers vs. Volumetric Fund Volumetric |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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