Correlation Between Ashmore Emerging and Blackrock Strategic
Can any of the company-specific risk be diversified away by investing in both Ashmore Emerging and Blackrock Strategic 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 Blackrock Strategic 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 Blackrock Strategic Global, you can compare the effects of market volatilities on Ashmore Emerging and Blackrock Strategic 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 Blackrock Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ashmore Emerging and Blackrock Strategic.
Diversification Opportunities for Ashmore Emerging and Blackrock Strategic
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ashmore and Blackrock is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Ashmore Emerging Markets and Blackrock Strategic Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Strategic 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 Blackrock Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock Strategic has no effect on the direction of Ashmore Emerging i.e., Ashmore Emerging and Blackrock Strategic go up and down completely randomly.
Pair Corralation between Ashmore Emerging and Blackrock Strategic
Assuming the 90 days horizon Ashmore Emerging is expected to generate 1.11 times less return on investment than Blackrock Strategic. But when comparing it to its historical volatility, Ashmore Emerging Markets is 1.43 times less risky than Blackrock Strategic. It trades about 0.21 of its potential returns per unit of risk. Blackrock Strategic Global is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 521.00 in Blackrock Strategic Global on September 15, 2024 and sell it today you would earn a total of 4.00 from holding Blackrock Strategic Global or generate 0.77% 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. Blackrock Strategic Global
Performance |
| Timeline |
| Ashmore Emerging Markets |
| Blackrock Strategic |
Ashmore Emerging and Blackrock Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ashmore Emerging and Blackrock Strategic
The main advantage of trading using opposite Ashmore Emerging and Blackrock Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ashmore Emerging position performs unexpectedly, Blackrock Strategic 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 Blackrock Strategic will offset losses from the drop in Blackrock Strategic's long position.| Ashmore Emerging vs. Rbb Fund | Ashmore Emerging vs. Commodities Strategy Fund | Ashmore Emerging vs. Semiconductor Ultrasector Profund | Ashmore Emerging vs. Century Small Cap |
| Blackrock Strategic vs. Blackrock California Municipal | Blackrock Strategic vs. Blackrock Balanced Capital | Blackrock Strategic vs. Blackrock Eurofund Class | Blackrock Strategic vs. Blackrock Funds |
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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