Correlation Between Ashmore Emerging and Ivy Micro
Can any of the company-specific risk be diversified away by investing in both Ashmore Emerging and Ivy Micro 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 Ivy Micro 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 Ivy Micro Cap, you can compare the effects of market volatilities on Ashmore Emerging and Ivy Micro 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 Ivy Micro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ashmore Emerging and Ivy Micro.
Diversification Opportunities for Ashmore Emerging and Ivy Micro
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ashmore and Ivy is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ashmore Emerging Markets and Ivy Micro Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ivy Micro 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 Ivy Micro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ivy Micro Cap has no effect on the direction of Ashmore Emerging i.e., Ashmore Emerging and Ivy Micro go up and down completely randomly.
Pair Corralation between Ashmore Emerging and Ivy Micro
If you would invest (100.00) in Ivy Micro Cap on October 12, 2024 and sell it today you would earn a total of 100.00 from holding Ivy Micro Cap or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Ashmore Emerging Markets vs. Ivy Micro Cap
Performance |
| Timeline |
| Ashmore Emerging Markets |
| Ivy Micro Cap |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Ashmore Emerging and Ivy Micro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ashmore Emerging and Ivy Micro
The main advantage of trading using opposite Ashmore Emerging and Ivy Micro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ashmore Emerging position performs unexpectedly, Ivy Micro 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 Ivy Micro will offset losses from the drop in Ivy Micro's long position.| Ashmore Emerging vs. Qs Moderate Growth | Ashmore Emerging vs. Transamerica Cleartrack Retirement | Ashmore Emerging vs. Qs Moderate Growth | Ashmore Emerging vs. Columbia Moderate Growth |
| Ivy Micro vs. Western Assets Emerging | Ivy Micro vs. Oberweis Emerging Growth | Ivy Micro vs. Ashmore Emerging Markets | Ivy Micro vs. Artisan Developing World |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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