Correlation Between Ashmore Emerging and Mfs International
Can any of the company-specific risk be diversified away by investing in both Ashmore Emerging and Mfs 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 Mfs 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 Mfs International New, you can compare the effects of market volatilities on Ashmore Emerging and Mfs 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 Mfs International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ashmore Emerging and Mfs International.
Diversification Opportunities for Ashmore Emerging and Mfs International
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ashmore and Mfs is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Ashmore Emerging Markets and Mfs International New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs International New 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 Mfs International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs International New has no effect on the direction of Ashmore Emerging i.e., Ashmore Emerging and Mfs International go up and down completely randomly.
Pair Corralation between Ashmore Emerging and Mfs International
Assuming the 90 days horizon Ashmore Emerging Markets is expected to generate 0.29 times more return on investment than Mfs International. However, Ashmore Emerging Markets is 3.45 times less risky than Mfs International. It trades about 0.05 of its potential returns per unit of risk. Mfs International New is currently generating about -0.03 per unit of risk. If you would invest 575.00 in Ashmore Emerging Markets on September 1, 2024 and sell it today you would earn a total of 1.00 from holding Ashmore Emerging Markets or generate 0.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Ashmore Emerging Markets vs. Mfs International New
Performance |
| Timeline |
| Ashmore Emerging Markets |
| Mfs International New |
Ashmore Emerging and Mfs International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ashmore Emerging and Mfs International
The main advantage of trading using opposite Ashmore Emerging and Mfs International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ashmore Emerging position performs unexpectedly, Mfs 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 Mfs International will offset losses from the drop in Mfs 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 |
| Mfs International vs. Origin Emerging Markets | Mfs International vs. Shelton Emerging Markets | Mfs International vs. Siit Emerging Markets | Mfs International vs. Ashmore Emerging Markets |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |