Correlation Between Ashmore Emerging and Calvert Global
Can any of the company-specific risk be diversified away by investing in both Ashmore Emerging and Calvert 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 Calvert 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 Calvert Global Energy, you can compare the effects of market volatilities on Ashmore Emerging and Calvert 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 Calvert Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ashmore Emerging and Calvert Global.
Diversification Opportunities for Ashmore Emerging and Calvert Global
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ashmore and Calvert is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Ashmore Emerging Markets and Calvert Global Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Global Energy 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 Calvert Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Global Energy has no effect on the direction of Ashmore Emerging i.e., Ashmore Emerging and Calvert Global go up and down completely randomly.
Pair Corralation between Ashmore Emerging and Calvert Global
Assuming the 90 days horizon Ashmore Emerging Markets is expected to generate 0.06 times more return on investment than Calvert Global. However, Ashmore Emerging Markets is 17.56 times less risky than Calvert Global. It trades about -0.1 of its potential returns per unit of risk. Calvert Global Energy is currently generating about -0.06 per unit of risk. If you would invest 882.00 in Ashmore Emerging Markets on September 4, 2024 and sell it today you would lose (1.00) from holding Ashmore Emerging Markets or give up 0.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ashmore Emerging Markets vs. Calvert Global Energy
Performance |
| Timeline |
| Ashmore Emerging Markets |
| Calvert Global Energy |
Ashmore Emerging and Calvert Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ashmore Emerging and Calvert Global
The main advantage of trading using opposite Ashmore Emerging and Calvert Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ashmore Emerging position performs unexpectedly, Calvert 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 Calvert Global will offset losses from the drop in Calvert Global's long position.| Ashmore Emerging vs. Elfun Government Money | Ashmore Emerging vs. General Money Market | Ashmore Emerging vs. Ab Government Exchange | Ashmore Emerging vs. John Hancock Money |
| Calvert Global vs. Ashmore Emerging Markets | Calvert Global vs. Wells Fargo Funds | Calvert Global vs. Lord Abbett Emerging | Calvert Global vs. Elfun Government Money |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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