Correlation Between Ashmore Emerging and Smi Dynamic
Can any of the company-specific risk be diversified away by investing in both Ashmore Emerging and Smi Dynamic 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 Smi Dynamic 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 Smi Dynamic Allocation, you can compare the effects of market volatilities on Ashmore Emerging and Smi Dynamic 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 Smi Dynamic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ashmore Emerging and Smi Dynamic.
Diversification Opportunities for Ashmore Emerging and Smi Dynamic
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Ashmore and Smi is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Ashmore Emerging Markets and Smi Dynamic Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Smi Dynamic Allocation 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 Smi Dynamic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Smi Dynamic Allocation has no effect on the direction of Ashmore Emerging i.e., Ashmore Emerging and Smi Dynamic go up and down completely randomly.
Pair Corralation between Ashmore Emerging and Smi Dynamic
Assuming the 90 days horizon Ashmore Emerging is expected to generate 1.23 times less return on investment than Smi Dynamic. But when comparing it to its historical volatility, Ashmore Emerging Markets is 1.89 times less risky than Smi Dynamic. It trades about 0.13 of its potential returns per unit of risk. Smi Dynamic Allocation is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,058 in Smi Dynamic Allocation on September 2, 2024 and sell it today you would earn a total of 262.00 from holding Smi Dynamic Allocation or generate 24.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ashmore Emerging Markets vs. Smi Dynamic Allocation
Performance |
| Timeline |
| Ashmore Emerging Markets |
| Smi Dynamic Allocation |
Ashmore Emerging and Smi Dynamic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ashmore Emerging and Smi Dynamic
The main advantage of trading using opposite Ashmore Emerging and Smi Dynamic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ashmore Emerging position performs unexpectedly, Smi Dynamic 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 Smi Dynamic will offset losses from the drop in Smi Dynamic's long position.| Ashmore Emerging vs. Aqr Diversified Arbitrage | Ashmore Emerging vs. Lord Abbett Diversified | Ashmore Emerging vs. Delaware Limited Term Diversified | Ashmore Emerging vs. Evaluator Conservative Rms |
| Smi Dynamic vs. T Rowe Price | Smi Dynamic vs. Rbc Microcap Value | Smi Dynamic vs. Volumetric Fund Volumetric | Smi Dynamic vs. Ab Value 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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