Correlation Between Quantitative and Ashmore Emerging
Can any of the company-specific risk be diversified away by investing in both Quantitative 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 Quantitative and Ashmore Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Quantitative Longshort Equity and Ashmore Emerging Markets, you can compare the effects of market volatilities on Quantitative 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 Quantitative with a short position of Ashmore Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Quantitative and Ashmore Emerging.
Diversification Opportunities for Quantitative and Ashmore Emerging
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Quantitative and Ashmore is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Quantitative Longshort Equity 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 Quantitative 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 Quantitative Longshort Equity 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 Quantitative i.e., Quantitative and Ashmore Emerging go up and down completely randomly.
Pair Corralation between Quantitative and Ashmore Emerging
Assuming the 90 days horizon Quantitative Longshort Equity is expected to generate 0.42 times more return on investment than Ashmore Emerging. However, Quantitative Longshort Equity is 2.39 times less risky than Ashmore Emerging. It trades about 0.28 of its potential returns per unit of risk. Ashmore Emerging Markets is currently generating about -0.18 per unit of risk. If you would invest 1,347 in Quantitative Longshort Equity on October 23, 2024 and sell it today you would earn a total of 23.00 from holding Quantitative Longshort Equity or generate 1.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Quantitative Longshort Equity vs. Ashmore Emerging Markets
Performance |
| Timeline |
| Quantitative Longshort |
| Ashmore Emerging Markets |
Quantitative and Ashmore Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Quantitative and Ashmore Emerging
The main advantage of trading using opposite Quantitative and Ashmore Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Quantitative 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.| Quantitative vs. Franklin Government Money | Quantitative vs. Versatile Bond Portfolio | Quantitative vs. Leader Short Term Bond | Quantitative vs. Transamerica Intermediate Muni |
| Ashmore Emerging vs. Gmo Global Equity | Ashmore Emerging vs. Quantitative Longshort Equity | Ashmore Emerging vs. T Rowe Price | Ashmore Emerging vs. Siit Equity Factor |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |