Correlation Between Ashmore Emerging and Ab Global
Can any of the company-specific risk be diversified away by investing in both Ashmore Emerging and Ab Global 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 Ab Global 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 Ab Global Risk, you can compare the effects of market volatilities on Ashmore Emerging and Ab Global 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 Ab Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ashmore Emerging and Ab Global.
Diversification Opportunities for Ashmore Emerging and Ab Global
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ashmore and CABIX is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Ashmore Emerging Markets and Ab Global Risk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Global Risk 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 Ab Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Global Risk has no effect on the direction of Ashmore Emerging i.e., Ashmore Emerging and Ab Global go up and down completely randomly.
Pair Corralation between Ashmore Emerging and Ab Global
Assuming the 90 days horizon Ashmore Emerging Markets is expected to under-perform the Ab Global. In addition to that, Ashmore Emerging is 1.9 times more volatile than Ab Global Risk. It trades about -0.24 of its total potential returns per unit of risk. Ab Global Risk is currently generating about 0.37 per unit of volatility. If you would invest 1,752 in Ab Global Risk on September 2, 2024 and sell it today you would earn a total of 50.00 from holding Ab Global Risk or generate 2.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ashmore Emerging Markets vs. Ab Global Risk
Performance |
| Timeline |
| Ashmore Emerging Markets |
| Ab Global Risk |
Ashmore Emerging and Ab Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ashmore Emerging and Ab Global
The main advantage of trading using opposite Ashmore Emerging and Ab Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ashmore Emerging position performs unexpectedly, Ab Global 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 Ab Global will offset losses from the drop in Ab Global's long position.| Ashmore Emerging vs. Ab Global Risk | Ashmore Emerging vs. Federated Institutional High | Ashmore Emerging vs. Lgm Risk Managed | Ashmore Emerging vs. Needham Aggressive Growth |
| Ab Global vs. Allianzgi Convertible Income | Ab Global vs. The Gamco Global | Ab Global vs. Harbor Vertible Securities | Ab Global vs. Advent Claymore Convertible |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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