Correlation Between Lind Capital and Ashmore Emerging
Can any of the company-specific risk be diversified away by investing in both Lind Capital and Ashmore Emerging 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 Lind Capital and Ashmore Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lind Capital Partners and Ashmore Emerging Markets, you can compare the effects of market volatilities on Lind Capital and Ashmore Emerging 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 Lind Capital with a short position of Ashmore Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lind Capital and Ashmore Emerging.
Diversification Opportunities for Lind Capital and Ashmore Emerging
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lind and Ashmore is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Lind Capital Partners and Ashmore Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ashmore Emerging Markets and Lind Capital 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 Lind Capital Partners are associated (or correlated) with Ashmore Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ashmore Emerging Markets has no effect on the direction of Lind Capital i.e., Lind Capital and Ashmore Emerging go up and down completely randomly.
Pair Corralation between Lind Capital and Ashmore Emerging
Assuming the 90 days horizon Lind Capital Partners is expected to generate 0.87 times more return on investment than Ashmore Emerging. However, Lind Capital Partners is 1.15 times less risky than Ashmore Emerging. It trades about 0.13 of its potential returns per unit of risk. Ashmore Emerging Markets is currently generating about 0.0 per unit of risk. If you would invest 894.00 in Lind Capital Partners on September 4, 2024 and sell it today you would earn a total of 7.00 from holding Lind Capital Partners or generate 0.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Lind Capital Partners vs. Ashmore Emerging Markets
Performance |
| Timeline |
| Lind Capital Partners |
| Ashmore Emerging Markets |
Lind Capital and Ashmore Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lind Capital and Ashmore Emerging
The main advantage of trading using opposite Lind Capital and Ashmore Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lind Capital position performs unexpectedly, Ashmore Emerging 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 Emerging will offset losses from the drop in Ashmore Emerging's long position.| Lind Capital vs. Vanguard Total Stock | Lind Capital vs. Vanguard 500 Index | Lind Capital vs. Vanguard Total Stock | Lind Capital vs. Vanguard Total Stock |
| Ashmore Emerging vs. American Funds Inflation | Ashmore Emerging vs. Tiaa Cref Inflation Linked Bond | Ashmore Emerging vs. T Rowe Price | Ashmore Emerging vs. Arrow Managed Futures |
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.
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