Correlation Between Ashmore Emerging and Salient Investment
Can any of the company-specific risk be diversified away by investing in both Ashmore Emerging and Salient Investment 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 Ashmore Emerging and Salient Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ashmore Emerging Markets and Salient Investment Grade, you can compare the effects of market volatilities on Ashmore Emerging and Salient Investment 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 Ashmore Emerging with a short position of Salient Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ashmore Emerging and Salient Investment.
Diversification Opportunities for Ashmore Emerging and Salient Investment
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Ashmore and Salient is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Ashmore Emerging Markets and Salient Investment Grade in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Salient Investment Grade and Ashmore Emerging 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 Ashmore Emerging Markets are associated (or correlated) with Salient Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Salient Investment Grade has no effect on the direction of Ashmore Emerging i.e., Ashmore Emerging and Salient Investment go up and down completely randomly.
Pair Corralation between Ashmore Emerging and Salient Investment
Assuming the 90 days horizon Ashmore Emerging Markets is expected to under-perform the Salient Investment. But the mutual fund apears to be less risky and, when comparing its historical volatility, Ashmore Emerging Markets is 4.67 times less risky than Salient Investment. The mutual fund trades about -0.06 of its potential returns per unit of risk. The Salient Investment Grade is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,308 in Salient Investment Grade on October 26, 2024 and sell it today you would earn a total of 104.00 from holding Salient Investment Grade or generate 7.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ashmore Emerging Markets vs. Salient Investment Grade
Performance |
| Timeline |
| Ashmore Emerging Markets |
| Salient Investment Grade |
Ashmore Emerging and Salient Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ashmore Emerging and Salient Investment
The main advantage of trading using opposite Ashmore Emerging and Salient Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ashmore Emerging position performs unexpectedly, Salient Investment 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 Salient Investment will offset losses from the drop in Salient Investment's long position.| Ashmore Emerging vs. Victory Rs Partners | Ashmore Emerging vs. Queens Road Small | Ashmore Emerging vs. William Blair Small | Ashmore Emerging vs. Valic Company I |
| Salient Investment vs. Artisan Developing World | Salient Investment vs. Ashmore Emerging Markets | Salient Investment vs. Siit Emerging Markets | Salient Investment vs. Growth Strategy Fund |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| 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 |