Correlation Between Ashmore Emerging and Johcm Global
Can any of the company-specific risk be diversified away by investing in both Ashmore Emerging and Johcm Global 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 Johcm Global 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 Johcm Global Income, you can compare the effects of market volatilities on Ashmore Emerging and Johcm Global 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 Johcm Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ashmore Emerging and Johcm Global.
Diversification Opportunities for Ashmore Emerging and Johcm Global
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ashmore and Johcm is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Ashmore Emerging Markets and Johcm Global Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Johcm Global Income 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 Johcm Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Johcm Global Income has no effect on the direction of Ashmore Emerging i.e., Ashmore Emerging and Johcm Global go up and down completely randomly.
Pair Corralation between Ashmore Emerging and Johcm Global
If you would invest 515.00 in Ashmore Emerging Markets on September 14, 2024 and sell it today you would earn a total of 64.00 from holding Ashmore Emerging Markets or generate 12.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.4% |
| Values | Daily Returns |
Ashmore Emerging Markets vs. Johcm Global Income
Performance |
| Timeline |
| Ashmore Emerging Markets |
| Johcm Global Income |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Ashmore Emerging and Johcm Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ashmore Emerging and Johcm Global
The main advantage of trading using opposite Ashmore Emerging and Johcm Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ashmore Emerging position performs unexpectedly, Johcm Global 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 Johcm Global will offset losses from the drop in Johcm Global'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 |
| Johcm Global vs. Us Government Securities | Johcm Global vs. Dws Government Money | Johcm Global vs. Franklin Adjustable Government | Johcm Global vs. Elfun Government Money |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |