Correlation Between Ashmore Emerging and Sit Esg
Can any of the company-specific risk be diversified away by investing in both Ashmore Emerging and Sit Esg 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 Sit Esg 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 Sit Esg Growth, you can compare the effects of market volatilities on Ashmore Emerging and Sit Esg 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 Sit Esg. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ashmore Emerging and Sit Esg.
Diversification Opportunities for Ashmore Emerging and Sit Esg
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ashmore and Sit is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Ashmore Emerging Markets and Sit Esg Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sit Esg Growth 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 Sit Esg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sit Esg Growth has no effect on the direction of Ashmore Emerging i.e., Ashmore Emerging and Sit Esg go up and down completely randomly.
Pair Corralation between Ashmore Emerging and Sit Esg
Assuming the 90 days horizon Ashmore Emerging Markets is expected to under-perform the Sit Esg. But the mutual fund apears to be less risky and, when comparing its historical volatility, Ashmore Emerging Markets is 12.41 times less risky than Sit Esg. The mutual fund trades about -0.17 of its potential returns per unit of risk. The Sit Esg Growth is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 2,246 in Sit Esg Growth on August 30, 2024 and sell it today you would earn a total of 23.00 from holding Sit Esg Growth or generate 1.02% 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. Sit Esg Growth
Performance |
| Timeline |
| Ashmore Emerging Markets |
| Sit Esg Growth |
Ashmore Emerging and Sit Esg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ashmore Emerging and Sit Esg
The main advantage of trading using opposite Ashmore Emerging and Sit Esg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ashmore Emerging position performs unexpectedly, Sit Esg 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 Sit Esg will offset losses from the drop in Sit Esg'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 |
| Sit Esg vs. Precious Metals And | Sit Esg vs. Gamco Global Gold | Sit Esg vs. Goldman Sachs Centrated | Sit Esg vs. Gabelli Gold Fund |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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