Correlation Between Ashmore Emerging and Total Return
Can any of the company-specific risk be diversified away by investing in both Ashmore Emerging and Total Return 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 Total Return 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 Total Return Fund, you can compare the effects of market volatilities on Ashmore Emerging and Total Return 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 Total Return. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ashmore Emerging and Total Return.
Diversification Opportunities for Ashmore Emerging and Total Return
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Ashmore and Total is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Ashmore Emerging Markets and Total Return Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Total Return 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 Total Return. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Total Return has no effect on the direction of Ashmore Emerging i.e., Ashmore Emerging and Total Return go up and down completely randomly.
Pair Corralation between Ashmore Emerging and Total Return
Assuming the 90 days horizon Ashmore Emerging Markets is expected to generate 0.64 times more return on investment than Total Return. However, Ashmore Emerging Markets is 1.55 times less risky than Total Return. It trades about 0.12 of its potential returns per unit of risk. Total Return Fund is currently generating about 0.04 per unit of risk. If you would invest 489.00 in Ashmore Emerging Markets on September 20, 2024 and sell it today you would earn a total of 87.00 from holding Ashmore Emerging Markets or generate 17.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ashmore Emerging Markets vs. Total Return Fund
Performance |
| Timeline |
| Ashmore Emerging Markets |
| Total Return |
Ashmore Emerging and Total Return Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ashmore Emerging and Total Return
The main advantage of trading using opposite Ashmore Emerging and Total Return positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ashmore Emerging position performs unexpectedly, Total Return 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 Total Return will offset losses from the drop in Total Return's long position.| Ashmore Emerging vs. Semiconductor Ultrasector Profund | Ashmore Emerging vs. Issachar Fund Class | Ashmore Emerging vs. Volumetric Fund Volumetric | Ashmore Emerging vs. Qs Growth Fund |
| Total Return vs. Rational Defensive Growth | Total Return vs. Vy Baron Growth | Total Return vs. Eip Growth And | Total Return vs. Smallcap Growth Fund |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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