Correlation Between Ashmore Emerging and Doubleline Core
Can any of the company-specific risk be diversified away by investing in both Ashmore Emerging and Doubleline Core 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 Doubleline Core 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 Doubleline Core Fixed, you can compare the effects of market volatilities on Ashmore Emerging and Doubleline Core 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 Doubleline Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ashmore Emerging and Doubleline Core.
Diversification Opportunities for Ashmore Emerging and Doubleline Core
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ashmore and Doubleline is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Ashmore Emerging Markets and Doubleline Core Fixed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Doubleline Core Fixed 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 Doubleline Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Doubleline Core Fixed has no effect on the direction of Ashmore Emerging i.e., Ashmore Emerging and Doubleline Core go up and down completely randomly.
Pair Corralation between Ashmore Emerging and Doubleline Core
Assuming the 90 days horizon Ashmore Emerging Markets is expected to under-perform the Doubleline Core. In addition to that, Ashmore Emerging is 1.4 times more volatile than Doubleline Core Fixed. It trades about -0.36 of its total potential returns per unit of risk. Doubleline Core Fixed is currently generating about -0.32 per unit of volatility. If you would invest 923.00 in Doubleline Core Fixed on October 14, 2024 and sell it today you would lose (13.00) from holding Doubleline Core Fixed or give up 1.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ashmore Emerging Markets vs. Doubleline Core Fixed
Performance |
| Timeline |
| Ashmore Emerging Markets |
| Doubleline Core Fixed |
Ashmore Emerging and Doubleline Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ashmore Emerging and Doubleline Core
The main advantage of trading using opposite Ashmore Emerging and Doubleline Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ashmore Emerging position performs unexpectedly, Doubleline Core 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 Doubleline Core will offset losses from the drop in Doubleline Core's long position.| Ashmore Emerging vs. Fidelity New Markets | Ashmore Emerging vs. Rbc Emerging Markets | Ashmore Emerging vs. Locorr Market Trend | Ashmore Emerging vs. Calvert Developed Market |
| Doubleline Core vs. Ashmore Emerging Markets | Doubleline Core vs. Eagle Mlp Strategy | Doubleline Core vs. Alphacentric Symmetry Strategy | Doubleline Core vs. Realestaterealreturn 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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