Correlation Between Hood River and Ashmore Emerging
Can any of the company-specific risk be diversified away by investing in both Hood River 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 Hood River and Ashmore Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hood River New and Ashmore Emerging Markets, you can compare the effects of market volatilities on Hood River 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 Hood River with a short position of Ashmore Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hood River and Ashmore Emerging.
Diversification Opportunities for Hood River and Ashmore Emerging
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hood and Ashmore is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hood River New 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 Hood River 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 Hood River New 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 Hood River i.e., Hood River and Ashmore Emerging go up and down completely randomly.
Pair Corralation between Hood River and Ashmore Emerging
If you would invest 1,366 in Hood River New on September 12, 2024 and sell it today you would earn a total of 19.00 from holding Hood River New or generate 1.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Hood River New vs. Ashmore Emerging Markets
Performance |
| Timeline |
| Hood River New |
| Ashmore Emerging Markets |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Hood River and Ashmore Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hood River and Ashmore Emerging
The main advantage of trading using opposite Hood River and Ashmore Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hood River 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.| Hood River vs. Ab Value Fund | Hood River vs. Century Small Cap | Hood River vs. T Rowe Price | Hood River vs. Multimedia Portfolio Multimedia |
| Ashmore Emerging vs. Jhancock Global Equity | Ashmore Emerging vs. Dreyfusstandish Global Fixed | Ashmore Emerging vs. Ab Global Bond | Ashmore Emerging vs. Ab Global Real |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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