Correlation Between Korea Closed and Ashmore Group
Can any of the company-specific risk be diversified away by investing in both Korea Closed and Ashmore Group 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 Korea Closed and Ashmore Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Korea Closed and Ashmore Group Plc, you can compare the effects of market volatilities on Korea Closed and Ashmore Group 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 Korea Closed with a short position of Ashmore Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Korea Closed and Ashmore Group.
Diversification Opportunities for Korea Closed and Ashmore Group
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Korea and Ashmore is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Korea Closed and Ashmore Group Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ashmore Group Plc and Korea Closed 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 Korea Closed are associated (or correlated) with Ashmore Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ashmore Group Plc has no effect on the direction of Korea Closed i.e., Korea Closed and Ashmore Group go up and down completely randomly.
Pair Corralation between Korea Closed and Ashmore Group
Allowing for the 90-day total investment horizon Korea Closed is expected to under-perform the Ashmore Group. In addition to that, Korea Closed is 1.08 times more volatile than Ashmore Group Plc. It trades about -0.19 of its total potential returns per unit of risk. Ashmore Group Plc is currently generating about 0.22 per unit of volatility. If you would invest 254.00 in Ashmore Group Plc on August 28, 2024 and sell it today you would earn a total of 16.00 from holding Ashmore Group Plc or generate 6.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Korea Closed vs. Ashmore Group Plc
Performance |
| Timeline |
| Korea Closed |
| Ashmore Group Plc |
Korea Closed and Ashmore Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Korea Closed and Ashmore Group
The main advantage of trading using opposite Korea Closed and Ashmore Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Korea Closed position performs unexpectedly, Ashmore Group 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 Ashmore Group will offset losses from the drop in Ashmore Group's long position.| Korea Closed vs. Mexico Equity And | Korea Closed vs. Western Asset Global | Korea Closed vs. New Germany Closed | Korea Closed vs. MFS Charter Income |
| Ashmore Group vs. Morgan Stanley China | Ashmore Group vs. Central Europe Russia | Ashmore Group vs. Morgan Stanley India | Ashmore Group vs. Nuveen Missouri Quality |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Transaction History View history of all your transactions and understand their impact on performance |