Correlation Between Ashmore Emerging and Simt Real
Can any of the company-specific risk be diversified away by investing in both Ashmore Emerging and Simt Real 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 Simt Real 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 Simt Real Estate, you can compare the effects of market volatilities on Ashmore Emerging and Simt Real 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 Simt Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ashmore Emerging and Simt Real.
Diversification Opportunities for Ashmore Emerging and Simt Real
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ashmore and Simt is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Ashmore Emerging Markets and Simt Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simt Real Estate 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 Simt Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simt Real Estate has no effect on the direction of Ashmore Emerging i.e., Ashmore Emerging and Simt Real go up and down completely randomly.
Pair Corralation between Ashmore Emerging and Simt Real
Assuming the 90 days horizon Ashmore Emerging Markets is not expected to generate positive returns. However, Ashmore Emerging Markets is 13.81 times less risky than Simt Real. It waists most of its returns potential to compensate for thr risk taken. Simt Real is generating about 0.02 per unit of risk. If you would invest 1,716 in Simt Real Estate on September 13, 2024 and sell it today you would earn a total of 5.00 from holding Simt Real Estate or generate 0.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ashmore Emerging Markets vs. Simt Real Estate
Performance |
| Timeline |
| Ashmore Emerging Markets |
| Simt Real Estate |
Ashmore Emerging and Simt Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ashmore Emerging and Simt Real
The main advantage of trading using opposite Ashmore Emerging and Simt Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ashmore Emerging position performs unexpectedly, Simt Real 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 Simt Real will offset losses from the drop in Simt Real's long position.| Ashmore Emerging vs. Ab Government Exchange | Ashmore Emerging vs. Elfun Government Money | Ashmore Emerging vs. Dws Government Money | Ashmore Emerging vs. Edward Jones Money |
| Simt Real vs. Franklin Natural Resources | Simt Real vs. Thrivent Natural Resources | Simt Real vs. Energy Basic Materials | Simt Real vs. Clearbridge Energy Mlp |
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 CEOs Directory module to screen CEOs from public companies around the world.
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