Correlation Between Aim Investment and Ashmore Emerging
Can any of the company-specific risk be diversified away by investing in both Aim Investment 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 Aim Investment and Ashmore Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aim Investment Secs and Ashmore Emerging Markets, you can compare the effects of market volatilities on Aim Investment 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 Aim Investment with a short position of Ashmore Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aim Investment and Ashmore Emerging.
Diversification Opportunities for Aim Investment and Ashmore Emerging
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aim and Ashmore is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Aim Investment Secs 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 Aim Investment 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 Aim Investment Secs 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 Aim Investment i.e., Aim Investment and Ashmore Emerging go up and down completely randomly.
Pair Corralation between Aim Investment and Ashmore Emerging
Assuming the 90 days horizon Aim Investment is expected to generate 1.48 times less return on investment than Ashmore Emerging. In addition to that, Aim Investment is 1.2 times more volatile than Ashmore Emerging Markets. It trades about 0.13 of its total potential returns per unit of risk. Ashmore Emerging Markets is currently generating about 0.22 per unit of volatility. If you would invest 855.00 in Ashmore Emerging Markets on September 2, 2024 and sell it today you would earn a total of 26.00 from holding Ashmore Emerging Markets or generate 3.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aim Investment Secs vs. Ashmore Emerging Markets
Performance |
| Timeline |
| Aim Investment Secs |
| Ashmore Emerging Markets |
Aim Investment and Ashmore Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aim Investment and Ashmore Emerging
The main advantage of trading using opposite Aim Investment and Ashmore Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aim Investment 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.| Aim Investment vs. Vanguard Total Stock | Aim Investment vs. Vanguard 500 Index | Aim Investment vs. Vanguard Total Stock | Aim Investment vs. Vanguard Total Stock |
| Ashmore Emerging vs. Qs Large Cap | Ashmore Emerging vs. M Large Cap | Ashmore Emerging vs. Fidelity Series 1000 | Ashmore Emerging vs. Qs Large Cap |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| 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 | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |