Correlation Between Qs Large and Ashmore Emerging
Can any of the company-specific risk be diversified away by investing in both Qs Large 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 Qs Large and Ashmore Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Qs Large Cap and Ashmore Emerging Markets, you can compare the effects of market volatilities on Qs Large 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 Qs Large with a short position of Ashmore Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qs Large and Ashmore Emerging.
Diversification Opportunities for Qs Large and Ashmore Emerging
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between LMISX and Ashmore is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Qs Large Cap 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 Qs Large 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 Qs Large Cap 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 Qs Large i.e., Qs Large and Ashmore Emerging go up and down completely randomly.
Pair Corralation between Qs Large and Ashmore Emerging
Assuming the 90 days horizon Qs Large Cap is expected to generate 1.5 times more return on investment than Ashmore Emerging. However, Qs Large is 1.5 times more volatile than Ashmore Emerging Markets. It trades about 0.16 of its potential returns per unit of risk. Ashmore Emerging Markets is currently generating about -0.02 per unit of risk. If you would invest 2,433 in Qs Large Cap on November 3, 2024 and sell it today you would earn a total of 76.00 from holding Qs Large Cap or generate 3.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qs Large Cap vs. Ashmore Emerging Markets
Performance |
| Timeline |
| Qs Large Cap |
| Ashmore Emerging Markets |
Qs Large and Ashmore Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qs Large and Ashmore Emerging
The main advantage of trading using opposite Qs Large and Ashmore Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qs Large 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.| Qs Large vs. Lord Abbett Inflation | Qs Large vs. Ab Bond Inflation | Qs Large vs. Cref Inflation Linked Bond | Qs Large vs. Abbey Capital Futures |
| Ashmore Emerging vs. Mid Cap 15x Strategy | Ashmore Emerging vs. Doubleline Emerging Markets | Ashmore Emerging vs. Nasdaq 100 2x Strategy | Ashmore Emerging vs. Angel Oak Multi Strategy |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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