Correlation Between Matson Money and Ashmore Emerging
Can any of the company-specific risk be diversified away by investing in both Matson Money 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 Matson Money and Ashmore Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Matson Money Fixed and Ashmore Emerging Markets, you can compare the effects of market volatilities on Matson Money 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 Matson Money with a short position of Ashmore Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Matson Money and Ashmore Emerging.
Diversification Opportunities for Matson Money and Ashmore Emerging
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between MATSON and Ashmore is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Matson Money Fixed 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 Matson Money 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 Matson Money Fixed 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 Matson Money i.e., Matson Money and Ashmore Emerging go up and down completely randomly.
Pair Corralation between Matson Money and Ashmore Emerging
Assuming the 90 days horizon Matson Money is expected to generate 1.09 times less return on investment than Ashmore Emerging. In addition to that, Matson Money is 1.17 times more volatile than Ashmore Emerging Markets. It trades about 0.15 of its total potential returns per unit of risk. Ashmore Emerging Markets is currently generating about 0.19 per unit of volatility. If you would invest 812.00 in Ashmore Emerging Markets on August 28, 2024 and sell it today you would earn a total of 66.00 from holding Ashmore Emerging Markets or generate 8.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.72% |
| Values | Daily Returns |
Matson Money Fixed vs. Ashmore Emerging Markets
Performance |
| Timeline |
| Matson Money Fixed |
| Ashmore Emerging Markets |
Matson Money and Ashmore Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Matson Money and Ashmore Emerging
The main advantage of trading using opposite Matson Money and Ashmore Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Matson Money 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.| Matson Money vs. Pace High Yield | Matson Money vs. Pace High Yield | Matson Money vs. Pimco High Yield | Matson Money vs. Blackrock High Yield |
| Ashmore Emerging vs. Ab Discovery Value | Ashmore Emerging vs. Applied Finance Explorer | Ashmore Emerging vs. Vanguard Small Cap Value | Ashmore Emerging vs. Boston Partners Small |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Commodity Directory Find actively traded commodities issued by global exchanges |