Correlation Between Ashmore Emerging and Voya High
Can any of the company-specific risk be diversified away by investing in both Ashmore Emerging and Voya High 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 Voya High 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 Voya High Yield, you can compare the effects of market volatilities on Ashmore Emerging and Voya High 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 Voya High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ashmore Emerging and Voya High.
Diversification Opportunities for Ashmore Emerging and Voya High
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ashmore and Voya is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Ashmore Emerging Markets and Voya High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya High Yield 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 Voya High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya High Yield has no effect on the direction of Ashmore Emerging i.e., Ashmore Emerging and Voya High go up and down completely randomly.
Pair Corralation between Ashmore Emerging and Voya High
Assuming the 90 days horizon Ashmore Emerging is expected to generate 1.16 times less return on investment than Voya High. But when comparing it to its historical volatility, Ashmore Emerging Markets is 1.74 times less risky than Voya High. It trades about 0.23 of its potential returns per unit of risk. Voya High Yield is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 650.00 in Voya High Yield on September 12, 2024 and sell it today you would earn a total of 51.00 from holding Voya High Yield or generate 7.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ashmore Emerging Markets vs. Voya High Yield
Performance |
| Timeline |
| Ashmore Emerging Markets |
| Voya High Yield |
Ashmore Emerging and Voya High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ashmore Emerging and Voya High
The main advantage of trading using opposite Ashmore Emerging and Voya High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ashmore Emerging position performs unexpectedly, Voya High 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 Voya High will offset losses from the drop in Voya High's long position.| Ashmore Emerging vs. Voya High Yield | Ashmore Emerging vs. Buffalo High Yield | Ashmore Emerging vs. Msift High Yield | Ashmore Emerging vs. T Rowe Price |
| Voya High vs. Bbh Intermediate Municipal | Voya High vs. Pace Municipal Fixed | Voya High vs. Baird Strategic Municipal | Voya High vs. Nuveen Minnesota Municipal |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |