Correlation Between Ashmore Emerging and Kopernik International
Can any of the company-specific risk be diversified away by investing in both Ashmore Emerging and Kopernik 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 Kopernik 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 Kopernik International Fund, you can compare the effects of market volatilities on Ashmore Emerging and Kopernik 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 Kopernik International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ashmore Emerging and Kopernik International.
Diversification Opportunities for Ashmore Emerging and Kopernik International
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Ashmore and Kopernik is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Ashmore Emerging Markets and Kopernik International Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kopernik 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 Kopernik International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kopernik International has no effect on the direction of Ashmore Emerging i.e., Ashmore Emerging and Kopernik International go up and down completely randomly.
Pair Corralation between Ashmore Emerging and Kopernik International
Assuming the 90 days horizon Ashmore Emerging Markets is expected to generate 0.35 times more return on investment than Kopernik International. However, Ashmore Emerging Markets is 2.86 times less risky than Kopernik International. It trades about -0.18 of its potential returns per unit of risk. Kopernik International Fund is currently generating about -0.3 per unit of risk. If you would invest 480.00 in Ashmore Emerging Markets on August 30, 2024 and sell it today you would lose (5.00) from holding Ashmore Emerging Markets or give up 1.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ashmore Emerging Markets vs. Kopernik International Fund
Performance |
| Timeline |
| Ashmore Emerging Markets |
| Kopernik International |
Ashmore Emerging and Kopernik International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ashmore Emerging and Kopernik International
The main advantage of trading using opposite Ashmore Emerging and Kopernik International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ashmore Emerging position performs unexpectedly, Kopernik 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 Kopernik International will offset losses from the drop in Kopernik International's long position.| Ashmore Emerging vs. Touchstone Premium Yield | Ashmore Emerging vs. Ab Global Bond | Ashmore Emerging vs. Icon Bond Fund | Ashmore Emerging vs. Bbh Intermediate Municipal |
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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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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