Correlation Between Ashmore Emerging and Wells Fargo
Can any of the company-specific risk be diversified away by investing in both Ashmore Emerging and Wells Fargo 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 Wells Fargo 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 Wells Fargo Advantage, you can compare the effects of market volatilities on Ashmore Emerging and Wells Fargo 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 Wells Fargo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ashmore Emerging and Wells Fargo.
Diversification Opportunities for Ashmore Emerging and Wells Fargo
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Ashmore and Wells is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Ashmore Emerging Markets and Wells Fargo Advantage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wells Fargo Advantage 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 Wells Fargo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wells Fargo Advantage has no effect on the direction of Ashmore Emerging i.e., Ashmore Emerging and Wells Fargo go up and down completely randomly.
Pair Corralation between Ashmore Emerging and Wells Fargo
If you would invest 875.00 in Ashmore Emerging Markets on September 2, 2024 and sell it today you would earn a total of 6.00 from holding Ashmore Emerging Markets or generate 0.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 1.56% |
| Values | Daily Returns |
Ashmore Emerging Markets vs. Wells Fargo Advantage
Performance |
| Timeline |
| Ashmore Emerging Markets |
| Wells Fargo Advantage |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Ashmore Emerging and Wells Fargo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ashmore Emerging and Wells Fargo
The main advantage of trading using opposite Ashmore Emerging and Wells Fargo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ashmore Emerging position performs unexpectedly, Wells Fargo 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 Wells Fargo will offset losses from the drop in Wells Fargo's long position.| Ashmore Emerging vs. Qs Large Cap | Ashmore Emerging vs. M Large Cap | Ashmore Emerging vs. Fidelity Series 1000 | Ashmore Emerging vs. Qs Large Cap |
| Wells Fargo vs. Energy Services Fund | Wells Fargo vs. Gmo Resources | Wells Fargo vs. Short Oil Gas | Wells Fargo vs. Calvert Global Energy |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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