Correlation Between Dws Emerging and Ashmore Emerging
Can any of the company-specific risk be diversified away by investing in both Dws Emerging 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 Dws Emerging and Ashmore Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dws Emerging Markets and Ashmore Emerging Markets, you can compare the effects of market volatilities on Dws Emerging 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 Dws Emerging with a short position of Ashmore Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dws Emerging and Ashmore Emerging.
Diversification Opportunities for Dws Emerging and Ashmore Emerging
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dws and Ashmore is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Dws Emerging Markets 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 Dws Emerging 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 Dws Emerging Markets 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 Dws Emerging i.e., Dws Emerging and Ashmore Emerging go up and down completely randomly.
Pair Corralation between Dws Emerging and Ashmore Emerging
Assuming the 90 days horizon Dws Emerging Markets is expected to generate 1.26 times more return on investment than Ashmore Emerging. However, Dws Emerging is 1.26 times more volatile than Ashmore Emerging Markets. It trades about -0.11 of its potential returns per unit of risk. Ashmore Emerging Markets is currently generating about -0.23 per unit of risk. If you would invest 1,897 in Dws Emerging Markets on September 2, 2024 and sell it today you would lose (40.00) from holding Dws Emerging Markets or give up 2.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dws Emerging Markets vs. Ashmore Emerging Markets
Performance |
| Timeline |
| Dws Emerging Markets |
| Ashmore Emerging Markets |
Dws Emerging and Ashmore Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dws Emerging and Ashmore Emerging
The main advantage of trading using opposite Dws Emerging and Ashmore Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dws Emerging 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.| Dws Emerging vs. Angel Oak Multi Strategy | Dws Emerging vs. Rbc Emerging Markets | Dws Emerging vs. Ep Emerging Markets | Dws Emerging vs. Transamerica Emerging Markets |
| Ashmore Emerging vs. Barings Emerging Markets | Ashmore Emerging vs. Rbc Emerging Markets | Ashmore Emerging vs. Goldman Sachs Emerging | Ashmore Emerging vs. Dws Emerging Markets |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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