Correlation Between Siit Equity and Ashmore Emerging
Can any of the company-specific risk be diversified away by investing in both Siit Equity 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 Siit Equity and Ashmore Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siit Equity Factor and Ashmore Emerging Markets, you can compare the effects of market volatilities on Siit Equity 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 Siit Equity with a short position of Ashmore Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit Equity and Ashmore Emerging.
Diversification Opportunities for Siit Equity and Ashmore Emerging
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Siit and Ashmore is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Siit Equity Factor 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 Siit Equity 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 Siit Equity Factor 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 Siit Equity i.e., Siit Equity and Ashmore Emerging go up and down completely randomly.
Pair Corralation between Siit Equity and Ashmore Emerging
Assuming the 90 days horizon Siit Equity Factor is expected to generate 2.03 times more return on investment than Ashmore Emerging. However, Siit Equity is 2.03 times more volatile than Ashmore Emerging Markets. It trades about 0.25 of its potential returns per unit of risk. Ashmore Emerging Markets is currently generating about 0.16 per unit of risk. If you would invest 1,445 in Siit Equity Factor on November 3, 2024 and sell it today you would earn a total of 51.00 from holding Siit Equity Factor or generate 3.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siit Equity Factor vs. Ashmore Emerging Markets
Performance |
| Timeline |
| Siit Equity Factor |
| Ashmore Emerging Markets |
Siit Equity and Ashmore Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit Equity and Ashmore Emerging
The main advantage of trading using opposite Siit Equity and Ashmore Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit Equity 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.| Siit Equity vs. Columbia Global Technology | Siit Equity vs. Goldman Sachs Technology | Siit Equity vs. Technology Ultrasector Profund | Siit Equity vs. Icon Information Technology |
| Ashmore Emerging vs. Specialized Technology Fund | Ashmore Emerging vs. Vanguard Information Technology | Ashmore Emerging vs. Blackrock Science Technology | Ashmore Emerging vs. Allianzgi Technology Fund |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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