Correlation Between Ashmore Emerging and Voya Index
Can any of the company-specific risk be diversified away by investing in both Ashmore Emerging and Voya Index 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 Voya Index 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 Voya Index Solution, you can compare the effects of market volatilities on Ashmore Emerging and Voya Index 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 Voya Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ashmore Emerging and Voya Index.
Diversification Opportunities for Ashmore Emerging and Voya Index
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ashmore and Voya is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Ashmore Emerging Markets and Voya Index Solution in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Index Solution 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 Voya Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Index Solution has no effect on the direction of Ashmore Emerging i.e., Ashmore Emerging and Voya Index go up and down completely randomly.
Pair Corralation between Ashmore Emerging and Voya Index
Assuming the 90 days horizon Ashmore Emerging Markets is expected to under-perform the Voya Index. But the mutual fund apears to be less risky and, when comparing its historical volatility, Ashmore Emerging Markets is 3.96 times less risky than Voya Index. The mutual fund trades about -0.04 of its potential returns per unit of risk. The Voya Index Solution is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,594 in Voya Index Solution on October 20, 2024 and sell it today you would earn a total of 33.00 from holding Voya Index Solution or generate 2.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ashmore Emerging Markets vs. Voya Index Solution
Performance |
| Timeline |
| Ashmore Emerging Markets |
| Voya Index Solution |
Ashmore Emerging and Voya Index Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ashmore Emerging and Voya Index
The main advantage of trading using opposite Ashmore Emerging and Voya Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ashmore Emerging position performs unexpectedly, Voya Index 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 Voya Index will offset losses from the drop in Voya Index's long position.| Ashmore Emerging vs. Needham Aggressive Growth | Ashmore Emerging vs. Dunham High Yield | Ashmore Emerging vs. Fidelity Focused High | Ashmore Emerging vs. Americafirst Monthly Risk On |
| Voya Index vs. Voya Bond Index | Voya Index vs. Voya Bond Index | Voya Index vs. Voya Limited Maturity | Voya Index vs. Voya Limited Maturity |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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