Correlation Between Fabxx and Ashmore Emerging
Can any of the company-specific risk be diversified away by investing in both Fabxx and Ashmore Emerging 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 Fabxx and Ashmore Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fabxx and Ashmore Emerging Markets, you can compare the effects of market volatilities on Fabxx and Ashmore Emerging 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 Fabxx with a short position of Ashmore Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fabxx and Ashmore Emerging.
Diversification Opportunities for Fabxx and Ashmore Emerging
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Fabxx and Ashmore is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Fabxx and Ashmore Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ashmore Emerging Markets and Fabxx 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 Fabxx are associated (or correlated) with Ashmore Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ashmore Emerging Markets has no effect on the direction of Fabxx i.e., Fabxx and Ashmore Emerging go up and down completely randomly.
Pair Corralation between Fabxx and Ashmore Emerging
Assuming the 90 days horizon Fabxx is expected to under-perform the Ashmore Emerging. In addition to that, Fabxx is 18.88 times more volatile than Ashmore Emerging Markets. It trades about -0.25 of its total potential returns per unit of risk. Ashmore Emerging Markets is currently generating about -0.24 per unit of volatility. If you would invest 1,390 in Ashmore Emerging Markets on September 2, 2024 and sell it today you would lose (49.00) from holding Ashmore Emerging Markets or give up 3.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fabxx vs. Ashmore Emerging Markets
Performance |
| Timeline |
| Fabxx |
| Ashmore Emerging Markets |
Fabxx and Ashmore Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fabxx and Ashmore Emerging
The main advantage of trading using opposite Fabxx and Ashmore Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fabxx position performs unexpectedly, Ashmore Emerging 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 Ashmore Emerging will offset losses from the drop in Ashmore Emerging's long position.| Fabxx vs. Tax Managed Large Cap | Fabxx vs. Americafirst Large Cap | Fabxx vs. T Rowe Price | Fabxx vs. Qs Large Cap |
| Ashmore Emerging vs. Ab Global Risk | Ashmore Emerging vs. Federated Institutional High | Ashmore Emerging vs. Lgm Risk Managed | Ashmore Emerging vs. Needham Aggressive Growth |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |