Correlation Between Ashmore Emerging and Nuveen Mid
Can any of the company-specific risk be diversified away by investing in both Ashmore Emerging and Nuveen Mid 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 Nuveen Mid 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 Nuveen Mid Cap, you can compare the effects of market volatilities on Ashmore Emerging and Nuveen Mid 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 Nuveen Mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ashmore Emerging and Nuveen Mid.
Diversification Opportunities for Ashmore Emerging and Nuveen Mid
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ashmore and Nuveen is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Ashmore Emerging Markets and Nuveen Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Mid Cap 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 Nuveen Mid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Mid Cap has no effect on the direction of Ashmore Emerging i.e., Ashmore Emerging and Nuveen Mid go up and down completely randomly.
Pair Corralation between Ashmore Emerging and Nuveen Mid
Assuming the 90 days horizon Ashmore Emerging Markets is expected to under-perform the Nuveen Mid. But the mutual fund apears to be less risky and, when comparing its historical volatility, Ashmore Emerging Markets is 20.16 times less risky than Nuveen Mid. The mutual fund trades about -0.1 of its potential returns per unit of risk. The Nuveen Mid Cap is currently generating about 0.46 of returns per unit of risk over similar time horizon. If you would invest 3,881 in Nuveen Mid Cap on September 5, 2024 and sell it today you would earn a total of 469.00 from holding Nuveen Mid Cap or generate 12.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Ashmore Emerging Markets vs. Nuveen Mid Cap
Performance |
| Timeline |
| Ashmore Emerging Markets |
| Nuveen Mid Cap |
Ashmore Emerging and Nuveen Mid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ashmore Emerging and Nuveen Mid
The main advantage of trading using opposite Ashmore Emerging and Nuveen Mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ashmore Emerging position performs unexpectedly, Nuveen Mid 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 Nuveen Mid will offset losses from the drop in Nuveen Mid's long position.| Ashmore Emerging vs. Ashmore Emerging Markets | Ashmore Emerging vs. Ashmore Emerging Markets | Ashmore Emerging vs. Ashmore Emerging Markets | Ashmore Emerging vs. Ashmore Emerging Markets |
| Nuveen Mid vs. Rbc Funds Trust | Nuveen Mid vs. Hsbc Treasury Money | Nuveen Mid vs. General Money Market | Nuveen Mid vs. Ashmore Emerging Markets |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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