Correlation Between Ashmore Emerging and Oklahoma College
Can any of the company-specific risk be diversified away by investing in both Ashmore Emerging and Oklahoma College 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 Oklahoma College 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 Oklahoma College Savings, you can compare the effects of market volatilities on Ashmore Emerging and Oklahoma College 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 Oklahoma College. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ashmore Emerging and Oklahoma College.
Diversification Opportunities for Ashmore Emerging and Oklahoma College
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ashmore and Oklahoma is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Ashmore Emerging Markets and Oklahoma College Savings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oklahoma College Savings 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 Oklahoma College. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oklahoma College Savings has no effect on the direction of Ashmore Emerging i.e., Ashmore Emerging and Oklahoma College go up and down completely randomly.
Pair Corralation between Ashmore Emerging and Oklahoma College
Assuming the 90 days horizon Ashmore Emerging Markets is expected to generate 1.47 times more return on investment than Oklahoma College. However, Ashmore Emerging is 1.47 times more volatile than Oklahoma College Savings. It trades about 0.09 of its potential returns per unit of risk. Oklahoma College Savings is currently generating about 0.03 per unit of risk. If you would invest 389.00 in Ashmore Emerging Markets on August 30, 2024 and sell it today you would earn a total of 95.00 from holding Ashmore Emerging Markets or generate 24.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ashmore Emerging Markets vs. Oklahoma College Savings
Performance |
| Timeline |
| Ashmore Emerging Markets |
| Oklahoma College Savings |
Ashmore Emerging and Oklahoma College Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ashmore Emerging and Oklahoma College
The main advantage of trading using opposite Ashmore Emerging and Oklahoma College positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ashmore Emerging position performs unexpectedly, Oklahoma College 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 Oklahoma College will offset losses from the drop in Oklahoma College's long position.| Ashmore Emerging vs. Oklahoma College Savings | Ashmore Emerging vs. Arrow Managed Futures | Ashmore Emerging vs. Western Asset Inflation | Ashmore Emerging vs. Goldman Sachs Inflation |
| Oklahoma College vs. Vanguard Total Stock | Oklahoma College vs. Vanguard 500 Index | Oklahoma College vs. Vanguard Total Stock | Oklahoma College vs. Vanguard Total Stock |
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
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |