Correlation Between Ashmore Emerging and Mesirow Financial
Can any of the company-specific risk be diversified away by investing in both Ashmore Emerging and Mesirow Financial 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 Mesirow Financial 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 Mesirow Financial High, you can compare the effects of market volatilities on Ashmore Emerging and Mesirow Financial 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 Mesirow Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ashmore Emerging and Mesirow Financial.
Diversification Opportunities for Ashmore Emerging and Mesirow Financial
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ashmore and Mesirow is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Ashmore Emerging Markets and Mesirow Financial High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mesirow Financial High 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 Mesirow Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mesirow Financial High has no effect on the direction of Ashmore Emerging i.e., Ashmore Emerging and Mesirow Financial go up and down completely randomly.
Pair Corralation between Ashmore Emerging and Mesirow Financial
Assuming the 90 days horizon Ashmore Emerging is expected to generate 7.02 times less return on investment than Mesirow Financial. In addition to that, Ashmore Emerging is 5.88 times more volatile than Mesirow Financial High. It trades about 0.01 of its total potential returns per unit of risk. Mesirow Financial High is currently generating about 0.41 per unit of volatility. If you would invest 847.00 in Mesirow Financial High on October 25, 2024 and sell it today you would earn a total of 10.00 from holding Mesirow Financial High or generate 1.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ashmore Emerging Markets vs. Mesirow Financial High
Performance |
| Timeline |
| Ashmore Emerging Markets |
| Mesirow Financial High |
Ashmore Emerging and Mesirow Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ashmore Emerging and Mesirow Financial
The main advantage of trading using opposite Ashmore Emerging and Mesirow Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ashmore Emerging position performs unexpectedly, Mesirow Financial 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 Mesirow Financial will offset losses from the drop in Mesirow Financial's long position.| Ashmore Emerging vs. Alternative Asset Allocation | Ashmore Emerging vs. Us Large Pany | Ashmore Emerging vs. Franklin Moderate Allocation | Ashmore Emerging vs. Fisher Large Cap |
| Mesirow Financial vs. Us Government Securities | Mesirow Financial vs. Franklin Adjustable Government | Mesirow Financial vs. Elfun Government Money | Mesirow Financial vs. Inverse Government Long |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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