Correlation Between Ashmore Emerging and Bny Mellon
Can any of the company-specific risk be diversified away by investing in both Ashmore Emerging and Bny Mellon 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 Bny Mellon 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 Bny Mellon National, you can compare the effects of market volatilities on Ashmore Emerging and Bny Mellon 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 Bny Mellon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ashmore Emerging and Bny Mellon.
Diversification Opportunities for Ashmore Emerging and Bny Mellon
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Ashmore and Bny is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Ashmore Emerging Markets and Bny Mellon National in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bny Mellon National 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 Bny Mellon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bny Mellon National has no effect on the direction of Ashmore Emerging i.e., Ashmore Emerging and Bny Mellon go up and down completely randomly.
Pair Corralation between Ashmore Emerging and Bny Mellon
Assuming the 90 days horizon Ashmore Emerging Markets is expected to generate 1.24 times more return on investment than Bny Mellon. However, Ashmore Emerging is 1.24 times more volatile than Bny Mellon National. It trades about 0.22 of its potential returns per unit of risk. Bny Mellon National is currently generating about 0.23 per unit of risk. If you would invest 855.00 in Ashmore Emerging Markets on September 1, 2024 and sell it today you would earn a total of 26.00 from holding Ashmore Emerging Markets or generate 3.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Ashmore Emerging Markets vs. Bny Mellon National
Performance |
| Timeline |
| Ashmore Emerging Markets |
| Bny Mellon National |
Ashmore Emerging and Bny Mellon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ashmore Emerging and Bny Mellon
The main advantage of trading using opposite Ashmore Emerging and Bny Mellon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ashmore Emerging position performs unexpectedly, Bny Mellon 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 Bny Mellon will offset losses from the drop in Bny Mellon's long position.| Ashmore Emerging vs. Franklin Lifesmart Retirement | Ashmore Emerging vs. Dimensional Retirement Income | Ashmore Emerging vs. Tiaa Cref Lifestyle Moderate | Ashmore Emerging vs. Wisdomtree Siegel Moderate |
| Bny Mellon vs. Dws Government Money | Bny Mellon vs. Chestnut Street Exchange | Bny Mellon vs. Lord Abbett Govt | Bny Mellon 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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