Correlation Between Ashmore Emerging and Teton Westwood
Can any of the company-specific risk be diversified away by investing in both Ashmore Emerging and Teton Westwood 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 Teton Westwood 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 Teton Westwood Equity, you can compare the effects of market volatilities on Ashmore Emerging and Teton Westwood 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 Teton Westwood. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ashmore Emerging and Teton Westwood.
Diversification Opportunities for Ashmore Emerging and Teton Westwood
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Ashmore and Teton is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Ashmore Emerging Markets and Teton Westwood Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Teton Westwood 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 Teton Westwood. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Teton Westwood Equity has no effect on the direction of Ashmore Emerging i.e., Ashmore Emerging and Teton Westwood go up and down completely randomly.
Pair Corralation between Ashmore Emerging and Teton Westwood
Assuming the 90 days horizon Ashmore Emerging Markets is expected to generate 0.35 times more return on investment than Teton Westwood. However, Ashmore Emerging Markets is 2.86 times less risky than Teton Westwood. It trades about 0.12 of its potential returns per unit of risk. Teton Westwood Equity is currently generating about 0.04 per unit of risk. If you would invest 498.00 in Ashmore Emerging Markets on November 29, 2024 and sell it today you would earn a total of 80.00 from holding Ashmore Emerging Markets or generate 16.06% 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. Teton Westwood Equity
Performance |
| Timeline |
| Ashmore Emerging Markets |
| Teton Westwood Equity |
Ashmore Emerging and Teton Westwood Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ashmore Emerging and Teton Westwood
The main advantage of trading using opposite Ashmore Emerging and Teton Westwood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ashmore Emerging position performs unexpectedly, Teton Westwood 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 Teton Westwood will offset losses from the drop in Teton Westwood's long position.| Ashmore Emerging vs. Calvert Large Cap | Ashmore Emerging vs. Legg Mason Partners | Ashmore Emerging vs. Lord Abbett Affiliated | Ashmore Emerging vs. Profunds Large Cap Growth |
| Teton Westwood vs. Ab Bond Inflation | Teton Westwood vs. Fidelity Sai Inflationfocused | Teton Westwood vs. Cref Inflation Linked Bond | Teton Westwood vs. Inflation Linked Fixed Income |
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 Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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