Correlation Between Ashmore Emerging and Pia High
Can any of the company-specific risk be diversified away by investing in both Ashmore Emerging and Pia High 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 Pia High 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 Pia High Yield, you can compare the effects of market volatilities on Ashmore Emerging and Pia High 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 Pia High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ashmore Emerging and Pia High.
Diversification Opportunities for Ashmore Emerging and Pia High
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ashmore and Pia is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Ashmore Emerging Markets and Pia High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pia High Yield 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 Pia High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pia High Yield has no effect on the direction of Ashmore Emerging i.e., Ashmore Emerging and Pia High go up and down completely randomly.
Pair Corralation between Ashmore Emerging and Pia High
Assuming the 90 days horizon Ashmore Emerging Markets is expected to under-perform the Pia High. In addition to that, Ashmore Emerging is 3.83 times more volatile than Pia High Yield. It trades about -0.26 of its total potential returns per unit of risk. Pia High Yield is currently generating about 0.14 per unit of volatility. If you would invest 905.00 in Pia High Yield on August 30, 2024 and sell it today you would earn a total of 5.00 from holding Pia High Yield or generate 0.55% 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. Pia High Yield
Performance |
| Timeline |
| Ashmore Emerging Markets |
| Pia High Yield |
Ashmore Emerging and Pia High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ashmore Emerging and Pia High
The main advantage of trading using opposite Ashmore Emerging and Pia High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ashmore Emerging position performs unexpectedly, Pia High 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 Pia High will offset losses from the drop in Pia High's long position.| Ashmore Emerging vs. T Rowe Price | Ashmore Emerging vs. Wasatch Small Cap | Ashmore Emerging vs. Massmutual Premier Diversified | Ashmore Emerging vs. American Century Diversified |
| Pia High vs. Prudential Health Sciences | Pia High vs. Baillie Gifford Health | Pia High vs. Health Biotchnology Portfolio | Pia High vs. Baron Health Care |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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