Correlation Between Ashmore Emerging and Columbia Amt
Can any of the company-specific risk be diversified away by investing in both Ashmore Emerging and Columbia Amt 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 Columbia Amt 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 Columbia Amt Free Intermediate, you can compare the effects of market volatilities on Ashmore Emerging and Columbia Amt 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 Columbia Amt. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ashmore Emerging and Columbia Amt.
Diversification Opportunities for Ashmore Emerging and Columbia Amt
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ashmore and Columbia is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Ashmore Emerging Markets and Columbia Amt Free Intermediate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbia Amt Free 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 Columbia Amt. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Columbia Amt Free has no effect on the direction of Ashmore Emerging i.e., Ashmore Emerging and Columbia Amt go up and down completely randomly.
Pair Corralation between Ashmore Emerging and Columbia Amt
Assuming the 90 days horizon Ashmore Emerging Markets is expected to under-perform the Columbia Amt. In addition to that, Ashmore Emerging is 1.67 times more volatile than Columbia Amt Free Intermediate. It trades about -0.52 of its total potential returns per unit of risk. Columbia Amt Free Intermediate is currently generating about -0.32 per unit of volatility. If you would invest 959.00 in Columbia Amt Free Intermediate on October 9, 2024 and sell it today you would lose (10.00) from holding Columbia Amt Free Intermediate or give up 1.04% 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. Columbia Amt Free Intermediate
Performance |
| Timeline |
| Ashmore Emerging Markets |
| Columbia Amt Free |
Ashmore Emerging and Columbia Amt Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ashmore Emerging and Columbia Amt
The main advantage of trading using opposite Ashmore Emerging and Columbia Amt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ashmore Emerging position performs unexpectedly, Columbia Amt 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 Columbia Amt will offset losses from the drop in Columbia Amt'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 |
| Columbia Amt vs. Invesco Vertible Securities | Columbia Amt vs. Allianzgi Convertible Income | Columbia Amt vs. Rationalpier 88 Convertible | Columbia Amt vs. Absolute Convertible Arbitrage |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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