Correlation Between Ashmore Emerging and Blackrock All-cap
Can any of the company-specific risk be diversified away by investing in both Ashmore Emerging and Blackrock All-cap 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 Blackrock All-cap 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 Blackrock All Cap Energy, you can compare the effects of market volatilities on Ashmore Emerging and Blackrock All-cap 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 Blackrock All-cap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ashmore Emerging and Blackrock All-cap.
Diversification Opportunities for Ashmore Emerging and Blackrock All-cap
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ashmore and Blackrock is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Ashmore Emerging Markets and Blackrock All Cap Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock All Cap 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 Blackrock All-cap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock All Cap has no effect on the direction of Ashmore Emerging i.e., Ashmore Emerging and Blackrock All-cap go up and down completely randomly.
Pair Corralation between Ashmore Emerging and Blackrock All-cap
Assuming the 90 days horizon Ashmore Emerging Markets is expected to generate 0.36 times more return on investment than Blackrock All-cap. However, Ashmore Emerging Markets is 2.74 times less risky than Blackrock All-cap. It trades about 0.09 of its potential returns per unit of risk. Blackrock All Cap Energy is currently generating about -0.06 per unit of risk. If you would invest 830.00 in Ashmore Emerging Markets on November 6, 2024 and sell it today you would earn a total of 5.00 from holding Ashmore Emerging Markets or generate 0.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ashmore Emerging Markets vs. Blackrock All Cap Energy
Performance |
| Timeline |
| Ashmore Emerging Markets |
| Blackrock All Cap |
Ashmore Emerging and Blackrock All-cap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ashmore Emerging and Blackrock All-cap
The main advantage of trading using opposite Ashmore Emerging and Blackrock All-cap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ashmore Emerging position performs unexpectedly, Blackrock All-cap 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 Blackrock All-cap will offset losses from the drop in Blackrock All-cap's long position.| Ashmore Emerging vs. Glg Intl Small | Ashmore Emerging vs. Federated Emerging Market | Ashmore Emerging vs. Eip Growth And | Ashmore Emerging vs. Intal High Relative |
| Blackrock All-cap vs. Aqr Long Short Equity | Blackrock All-cap vs. Nuveen Core Equity | Blackrock All-cap vs. Ultra Short Fixed Income | Blackrock All-cap vs. T Rowe Price |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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