Correlation Between Ashmore Emerging and Horizon Us
Can any of the company-specific risk be diversified away by investing in both Ashmore Emerging and Horizon Us 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 Horizon Us 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 Horizon Defensive Equity, you can compare the effects of market volatilities on Ashmore Emerging and Horizon Us 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 Horizon Us. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ashmore Emerging and Horizon Us.
Diversification Opportunities for Ashmore Emerging and Horizon Us
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Ashmore and Horizon is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Ashmore Emerging Markets and Horizon Defensive Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Horizon Defensive Equity 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 Horizon Us. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Horizon Defensive Equity has no effect on the direction of Ashmore Emerging i.e., Ashmore Emerging and Horizon Us go up and down completely randomly.
Pair Corralation between Ashmore Emerging and Horizon Us
Assuming the 90 days horizon Ashmore Emerging is expected to generate 9.45 times less return on investment than Horizon Us. But when comparing it to its historical volatility, Ashmore Emerging Markets is 2.72 times less risky than Horizon Us. It trades about 0.05 of its potential returns per unit of risk. Horizon Defensive Equity is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 3,222 in Horizon Defensive Equity on September 2, 2024 and sell it today you would earn a total of 220.00 from holding Horizon Defensive Equity or generate 6.83% 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. Horizon Defensive Equity
Performance |
| Timeline |
| Ashmore Emerging Markets |
| Horizon Defensive Equity |
Ashmore Emerging and Horizon Us Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ashmore Emerging and Horizon Us
The main advantage of trading using opposite Ashmore Emerging and Horizon Us positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ashmore Emerging position performs unexpectedly, Horizon Us 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 Horizon Us will offset losses from the drop in Horizon Us' 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 |
| Horizon Us vs. Horizon Active Risk | Horizon Us vs. Horizon Active Risk | Horizon Us vs. Horizon Active Asset | Horizon Us vs. Horizon Active Dividend |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |