Correlation Between Ashmore Emerging and Teachers Insurance
Can any of the company-specific risk be diversified away by investing in both Ashmore Emerging and Teachers Insurance 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 Teachers Insurance 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 Teachers Insurance And, you can compare the effects of market volatilities on Ashmore Emerging and Teachers Insurance 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 Teachers Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ashmore Emerging and Teachers Insurance.
Diversification Opportunities for Ashmore Emerging and Teachers Insurance
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ashmore and Teachers is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Ashmore Emerging Markets and Teachers Insurance And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Teachers Insurance And 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 Teachers Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Teachers Insurance And has no effect on the direction of Ashmore Emerging i.e., Ashmore Emerging and Teachers Insurance go up and down completely randomly.
Pair Corralation between Ashmore Emerging and Teachers Insurance
Assuming the 90 days horizon Ashmore Emerging Markets is expected to generate 11.48 times more return on investment than Teachers Insurance. However, Ashmore Emerging is 11.48 times more volatile than Teachers Insurance And. It trades about 0.09 of its potential returns per unit of risk. Teachers Insurance And is currently generating about 0.04 per unit of risk. If you would invest 1,791 in Ashmore Emerging Markets on November 28, 2024 and sell it today you would earn a total of 27.00 from holding Ashmore Emerging Markets or generate 1.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ashmore Emerging Markets vs. Teachers Insurance And
Performance |
| Timeline |
| Ashmore Emerging Markets |
| Teachers Insurance And |
Ashmore Emerging and Teachers Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ashmore Emerging and Teachers Insurance
The main advantage of trading using opposite Ashmore Emerging and Teachers Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ashmore Emerging position performs unexpectedly, Teachers Insurance 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 Teachers Insurance will offset losses from the drop in Teachers Insurance's long position.| Ashmore Emerging vs. Ab Bond Inflation | Ashmore Emerging vs. Flexible Bond Portfolio | Ashmore Emerging vs. Versatile Bond Portfolio | Ashmore Emerging vs. Doubleline E Fixed |
| Teachers Insurance vs. Us Government Securities | Teachers Insurance vs. Aig Government Money | Teachers Insurance vs. Western Asset Premier | Teachers Insurance 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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