Correlation Between Ashmore Emerging and Origin Emerging
Can any of the company-specific risk be diversified away by investing in both Ashmore Emerging and Origin Emerging 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 Origin Emerging 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 Origin Emerging Markets, you can compare the effects of market volatilities on Ashmore Emerging and Origin Emerging 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 Origin Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ashmore Emerging and Origin Emerging.
Diversification Opportunities for Ashmore Emerging and Origin Emerging
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ashmore and Origin is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Ashmore Emerging Markets and Origin Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Origin Emerging Markets 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 Origin Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Origin Emerging Markets has no effect on the direction of Ashmore Emerging i.e., Ashmore Emerging and Origin Emerging go up and down completely randomly.
Pair Corralation between Ashmore Emerging and Origin Emerging
Assuming the 90 days horizon Ashmore Emerging Markets is expected to generate 0.2 times more return on investment than Origin Emerging. However, Ashmore Emerging Markets is 4.91 times less risky than Origin Emerging. It trades about 0.0 of its potential returns per unit of risk. Origin Emerging Markets is currently generating about -0.09 per unit of risk. If you would invest 576.00 in Ashmore Emerging Markets on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Ashmore Emerging Markets or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ashmore Emerging Markets vs. Origin Emerging Markets
Performance |
| Timeline |
| Ashmore Emerging Markets |
| Origin Emerging Markets |
Ashmore Emerging and Origin Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ashmore Emerging and Origin Emerging
The main advantage of trading using opposite Ashmore Emerging and Origin Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ashmore Emerging position performs unexpectedly, Origin Emerging 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 Origin Emerging will offset losses from the drop in Origin Emerging's long position.| Ashmore Emerging vs. Financial Industries Fund | Ashmore Emerging vs. Mesirow Financial Small | Ashmore Emerging vs. T Rowe Price | Ashmore Emerging vs. Transamerica Funds |
| Origin Emerging vs. Gabelli Gold Fund | Origin Emerging vs. Goldman Sachs Centrated | Origin Emerging vs. Fidelity Advisor Gold | Origin Emerging vs. James Balanced Golden |
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 CEOs Directory module to screen CEOs from public companies around the world.
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