Correlation Between Ashmore Emerging and Goldman Sachs
Can any of the company-specific risk be diversified away by investing in both Ashmore Emerging and Goldman Sachs 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 Goldman Sachs 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 Goldman Sachs Bond, you can compare the effects of market volatilities on Ashmore Emerging and Goldman Sachs 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 Goldman Sachs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ashmore Emerging and Goldman Sachs.
Diversification Opportunities for Ashmore Emerging and Goldman Sachs
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ashmore and Goldman is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Ashmore Emerging Markets and Goldman Sachs Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs 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 Goldman Sachs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goldman Sachs Bond has no effect on the direction of Ashmore Emerging i.e., Ashmore Emerging and Goldman Sachs go up and down completely randomly.
Pair Corralation between Ashmore Emerging and Goldman Sachs
Assuming the 90 days horizon Ashmore Emerging Markets is expected to generate 0.57 times more return on investment than Goldman Sachs. However, Ashmore Emerging Markets is 1.75 times less risky than Goldman Sachs. It trades about 0.21 of its potential returns per unit of risk. Goldman Sachs Bond is currently generating about 0.06 per unit of risk. If you would invest 513.00 in Ashmore Emerging Markets on September 2, 2024 and sell it today you would earn a total of 63.00 from holding Ashmore Emerging Markets or generate 12.28% 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. Goldman Sachs Bond
Performance |
| Timeline |
| Ashmore Emerging Markets |
| Goldman Sachs Bond |
Ashmore Emerging and Goldman Sachs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ashmore Emerging and Goldman Sachs
The main advantage of trading using opposite Ashmore Emerging and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ashmore Emerging position performs unexpectedly, Goldman Sachs 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 Goldman Sachs will offset losses from the drop in Goldman Sachs' long position.| Ashmore Emerging vs. Aqr Diversified Arbitrage | Ashmore Emerging vs. Lord Abbett Diversified | Ashmore Emerging vs. Delaware Limited Term Diversified | Ashmore Emerging vs. Evaluator Conservative Rms |
| Goldman Sachs vs. Inflation Protected Bond Fund | Goldman Sachs vs. Versatile Bond Portfolio | Goldman Sachs vs. Thrivent Income Fund | Goldman Sachs vs. Ft 7934 Corporate |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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