Correlation Between Ashmore Emerging and Gabelli Global
Can any of the company-specific risk be diversified away by investing in both Ashmore Emerging and Gabelli Global 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 Gabelli Global 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 Gabelli Global Financial, you can compare the effects of market volatilities on Ashmore Emerging and Gabelli Global 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 Gabelli Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ashmore Emerging and Gabelli Global.
Diversification Opportunities for Ashmore Emerging and Gabelli Global
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ashmore and Gabelli is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Ashmore Emerging Markets and Gabelli Global Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gabelli Global Financial 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 Gabelli Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gabelli Global Financial has no effect on the direction of Ashmore Emerging i.e., Ashmore Emerging and Gabelli Global go up and down completely randomly.
Pair Corralation between Ashmore Emerging and Gabelli Global
Assuming the 90 days horizon Ashmore Emerging is expected to generate 5.6 times less return on investment than Gabelli Global. But when comparing it to its historical volatility, Ashmore Emerging Markets is 10.25 times less risky than Gabelli Global. It trades about 0.2 of its potential returns per unit of risk. Gabelli Global Financial is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,418 in Gabelli Global Financial on August 29, 2024 and sell it today you would earn a total of 216.00 from holding Gabelli Global Financial or generate 15.23% 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. Gabelli Global Financial
Performance |
| Timeline |
| Ashmore Emerging Markets |
| Gabelli Global Financial |
Ashmore Emerging and Gabelli Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ashmore Emerging and Gabelli Global
The main advantage of trading using opposite Ashmore Emerging and Gabelli Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ashmore Emerging position performs unexpectedly, Gabelli Global 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 Gabelli Global will offset losses from the drop in Gabelli Global's long position.| Ashmore Emerging vs. Technology Ultrasector Profund | Ashmore Emerging vs. Pgim Jennison Technology | Ashmore Emerging vs. Dreyfus Technology Growth | Ashmore Emerging vs. Global Technology Portfolio |
| Gabelli Global vs. Towpath Technology | Gabelli Global vs. Allianzgi Technology Fund | Gabelli Global vs. Blackrock Science Technology | Gabelli Global vs. Fidelity Advisor Technology |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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