Correlation Between Ashmore Emerging and Westcore International
Can any of the company-specific risk be diversified away by investing in both Ashmore Emerging and Westcore International 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 Westcore International 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 Westcore International Small Cap, you can compare the effects of market volatilities on Ashmore Emerging and Westcore International 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 Westcore International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ashmore Emerging and Westcore International.
Diversification Opportunities for Ashmore Emerging and Westcore International
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ashmore and Westcore is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Ashmore Emerging Markets and Westcore International Small C in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Westcore International 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 Westcore International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Westcore International has no effect on the direction of Ashmore Emerging i.e., Ashmore Emerging and Westcore International go up and down completely randomly.
Pair Corralation between Ashmore Emerging and Westcore International
If you would invest 1,567 in Westcore International Small Cap on September 4, 2024 and sell it today you would earn a total of 0.00 from holding Westcore International Small Cap or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Ashmore Emerging Markets vs. Westcore International Small C
Performance |
| Timeline |
| Ashmore Emerging Markets |
| Westcore International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Ashmore Emerging and Westcore International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ashmore Emerging and Westcore International
The main advantage of trading using opposite Ashmore Emerging and Westcore International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ashmore Emerging position performs unexpectedly, Westcore International 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 Westcore International will offset losses from the drop in Westcore International's long position.| Ashmore Emerging vs. Elfun Government Money | Ashmore Emerging vs. General Money Market | Ashmore Emerging vs. Ab Government Exchange | Ashmore Emerging vs. John Hancock Money |
| Westcore International vs. Mondrian Emerging Markets | Westcore International vs. Fundvantage Trust | Westcore International vs. Legg Mason Partners | Westcore International vs. Transamerica 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |