Correlation Between Wasatch Global and Ashmore Emerging
Can any of the company-specific risk be diversified away by investing in both Wasatch Global 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 Wasatch Global and Ashmore Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wasatch Global Opportunities and Ashmore Emerging Markets, you can compare the effects of market volatilities on Wasatch Global 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 Wasatch Global with a short position of Ashmore Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wasatch Global and Ashmore Emerging.
Diversification Opportunities for Wasatch Global and Ashmore Emerging
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Wasatch and Ashmore is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Wasatch Global Opportunities 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 Wasatch Global 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 Wasatch Global Opportunities 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 Wasatch Global i.e., Wasatch Global and Ashmore Emerging go up and down completely randomly.
Pair Corralation between Wasatch Global and Ashmore Emerging
Assuming the 90 days horizon Wasatch Global Opportunities is expected to generate 1.97 times more return on investment than Ashmore Emerging. However, Wasatch Global is 1.97 times more volatile than Ashmore Emerging Markets. It trades about 0.06 of its potential returns per unit of risk. Ashmore Emerging Markets is currently generating about 0.08 per unit of risk. If you would invest 372.00 in Wasatch Global Opportunities on August 30, 2024 and sell it today you would earn a total of 129.00 from holding Wasatch Global Opportunities or generate 34.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wasatch Global Opportunities vs. Ashmore Emerging Markets
Performance |
| Timeline |
| Wasatch Global Oppor |
| Ashmore Emerging Markets |
Wasatch Global and Ashmore Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wasatch Global and Ashmore Emerging
The main advantage of trading using opposite Wasatch Global and Ashmore Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wasatch Global 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.| Wasatch Global vs. Firsthand Alternative Energy | Wasatch Global vs. Portfolio 21 Global | Wasatch Global vs. HUMANA INC | Wasatch Global vs. Aquagold International |
| Ashmore Emerging vs. Barings Global Floating | Ashmore Emerging vs. Artisan Global Unconstrained | Ashmore Emerging vs. Wasatch Global Opportunities | Ashmore Emerging vs. Power Global Tactical |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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