Correlation Between Ashmore Emerging and Alphacentric Municipal
Can any of the company-specific risk be diversified away by investing in both Ashmore Emerging and Alphacentric Municipal 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 Alphacentric Municipal 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 Alphacentric Municipal Opportunities, you can compare the effects of market volatilities on Ashmore Emerging and Alphacentric Municipal 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 Alphacentric Municipal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ashmore Emerging and Alphacentric Municipal.
Diversification Opportunities for Ashmore Emerging and Alphacentric Municipal
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ashmore and Alphacentric is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Ashmore Emerging Markets and Alphacentric Municipal Opportu in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alphacentric Municipal 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 Alphacentric Municipal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alphacentric Municipal has no effect on the direction of Ashmore Emerging i.e., Ashmore Emerging and Alphacentric Municipal go up and down completely randomly.
Pair Corralation between Ashmore Emerging and Alphacentric Municipal
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 | Very Weak |
| Accuracy | 0.81% |
| Values | Daily Returns |
Ashmore Emerging Markets vs. Alphacentric Municipal Opportu
Performance |
| Timeline |
| Ashmore Emerging Markets |
| Alphacentric Municipal |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Ashmore Emerging and Alphacentric Municipal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ashmore Emerging and Alphacentric Municipal
The main advantage of trading using opposite Ashmore Emerging and Alphacentric Municipal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ashmore Emerging position performs unexpectedly, Alphacentric Municipal 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 Alphacentric Municipal will offset losses from the drop in Alphacentric Municipal'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 |
| Alphacentric Municipal vs. Gabelli Gold Fund | Alphacentric Municipal vs. Short Precious Metals | Alphacentric Municipal vs. Europac Gold Fund | Alphacentric Municipal vs. Vy Goldman Sachs |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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