Correlation Between Multi Manager and Ashmore Emerging
Can any of the company-specific risk be diversified away by investing in both Multi Manager 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 Multi Manager and Ashmore Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Multi Manager High Yield and Ashmore Emerging Markets, you can compare the effects of market volatilities on Multi Manager 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 Multi Manager with a short position of Ashmore Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multi Manager and Ashmore Emerging.
Diversification Opportunities for Multi Manager and Ashmore Emerging
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Multi and Ashmore is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Multi Manager High Yield 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 Multi Manager 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 Multi Manager High Yield 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 Multi Manager i.e., Multi Manager and Ashmore Emerging go up and down completely randomly.
Pair Corralation between Multi Manager and Ashmore Emerging
Assuming the 90 days horizon Multi Manager High Yield is expected to generate 0.18 times more return on investment than Ashmore Emerging. However, Multi Manager High Yield is 5.63 times less risky than Ashmore Emerging. It trades about 0.4 of its potential returns per unit of risk. Ashmore Emerging Markets is currently generating about 0.01 per unit of risk. If you would invest 837.00 in Multi Manager High Yield on October 25, 2024 and sell it today you would earn a total of 10.00 from holding Multi Manager High Yield or generate 1.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Multi Manager High Yield vs. Ashmore Emerging Markets
Performance |
| Timeline |
| Multi Manager High |
| Ashmore Emerging Markets |
Multi Manager and Ashmore Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Multi Manager and Ashmore Emerging
The main advantage of trading using opposite Multi Manager and Ashmore Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Multi Manager 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.| Multi Manager vs. Jhancock Real Estate | Multi Manager vs. Tiaa Cref Real Estate | Multi Manager vs. Commonwealth Real Estate | Multi Manager vs. Vanguard Reit Index |
| Ashmore Emerging vs. Alternative Asset Allocation | Ashmore Emerging vs. Us Large Pany | Ashmore Emerging vs. Franklin Moderate Allocation | Ashmore Emerging vs. Fisher Large Cap |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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