Correlation Between Ashmore Emerging and Mainstay Government
Can any of the company-specific risk be diversified away by investing in both Ashmore Emerging and Mainstay Government 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 Mainstay Government 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 Mainstay Government Fund, you can compare the effects of market volatilities on Ashmore Emerging and Mainstay Government 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 Mainstay Government. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ashmore Emerging and Mainstay Government.
Diversification Opportunities for Ashmore Emerging and Mainstay Government
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ashmore and Mainstay is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Ashmore Emerging Markets and Mainstay Government Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Government 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 Mainstay Government. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Government has no effect on the direction of Ashmore Emerging i.e., Ashmore Emerging and Mainstay Government go up and down completely randomly.
Pair Corralation between Ashmore Emerging and Mainstay Government
Assuming the 90 days horizon Ashmore Emerging Markets is expected to generate 0.67 times more return on investment than Mainstay Government. However, Ashmore Emerging Markets is 1.5 times less risky than Mainstay Government. It trades about 0.22 of its potential returns per unit of risk. Mainstay Government Fund is currently generating about 0.06 per unit of risk. If you would invest 546.00 in Ashmore Emerging Markets on September 13, 2024 and sell it today you would earn a total of 34.00 from holding Ashmore Emerging Markets or generate 6.23% 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. Mainstay Government Fund
Performance |
| Timeline |
| Ashmore Emerging Markets |
| Mainstay Government |
Ashmore Emerging and Mainstay Government Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ashmore Emerging and Mainstay Government
The main advantage of trading using opposite Ashmore Emerging and Mainstay Government positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ashmore Emerging position performs unexpectedly, Mainstay Government 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 Mainstay Government will offset losses from the drop in Mainstay Government's long position.| Ashmore Emerging vs. Amg Managers Centersquare | Ashmore Emerging vs. Forum Real Estate | Ashmore Emerging vs. Fidelity Real Estate | Ashmore Emerging vs. Prudential Real Estate |
| Mainstay Government vs. Real Estate Ultrasector | Mainstay Government vs. Virtus Real Estate | Mainstay Government vs. Redwood Real Estate | Mainstay Government vs. Prudential Real Estate |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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