Correlation Between Ashmore Emerging and Calvert High
Can any of the company-specific risk be diversified away by investing in both Ashmore Emerging and Calvert High 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 Calvert High 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 Calvert High Yield, you can compare the effects of market volatilities on Ashmore Emerging and Calvert High 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 Calvert High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ashmore Emerging and Calvert High.
Diversification Opportunities for Ashmore Emerging and Calvert High
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ashmore and Calvert is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Ashmore Emerging Markets and Calvert High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert High Yield 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 Calvert High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert High Yield has no effect on the direction of Ashmore Emerging i.e., Ashmore Emerging and Calvert High go up and down completely randomly.
Pair Corralation between Ashmore Emerging and Calvert High
Assuming the 90 days horizon Ashmore Emerging Markets is expected to under-perform the Calvert High. In addition to that, Ashmore Emerging is 2.09 times more volatile than Calvert High Yield. It trades about -0.52 of its total potential returns per unit of risk. Calvert High Yield is currently generating about -0.37 per unit of volatility. If you would invest 2,504 in Calvert High Yield on October 9, 2024 and sell it today you would lose (24.00) from holding Calvert High Yield or give up 0.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ashmore Emerging Markets vs. Calvert High Yield
Performance |
| Timeline |
| Ashmore Emerging Markets |
| Calvert High Yield |
Ashmore Emerging and Calvert High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ashmore Emerging and Calvert High
The main advantage of trading using opposite Ashmore Emerging and Calvert High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ashmore Emerging position performs unexpectedly, Calvert High 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 Calvert High will offset losses from the drop in Calvert High's long position.| Ashmore Emerging vs. Wilmington Diversified Income | Ashmore Emerging vs. Pimco Diversified Income | Ashmore Emerging vs. Wells Fargo Diversified | Ashmore Emerging vs. Wealthbuilder Conservative Allocation |
| Calvert High vs. Investec Global Franchise | Calvert High vs. Us Global Investors | Calvert High vs. Qs Global Equity | Calvert High vs. Asg Global Alternatives |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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