Correlation Between Ashmore Emerging and Amg Managers

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Ashmore Emerging and Amg Managers 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 Ashmore Emerging and Amg Managers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ashmore Emerging Markets and Amg Managers Brandywine, you can compare the effects of market volatilities on Ashmore Emerging and Amg Managers 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 Ashmore Emerging with a short position of Amg Managers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ashmore Emerging and Amg Managers.

Diversification Opportunities for Ashmore Emerging and Amg Managers

0.31
  Correlation Coefficient

Weak diversification

The 3 months correlation between Ashmore and Amg is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Ashmore Emerging Markets and Amg Managers Brandywine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amg Managers Brandywine and Ashmore 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 Ashmore Emerging Markets are associated (or correlated) with Amg Managers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amg Managers Brandywine has no effect on the direction of Ashmore Emerging i.e., Ashmore Emerging and Amg Managers go up and down completely randomly.

Pair Corralation between Ashmore Emerging and Amg Managers

Assuming the 90 days horizon Ashmore Emerging is expected to generate 3.22 times less return on investment than Amg Managers. But when comparing it to its historical volatility, Ashmore Emerging Markets is 2.88 times less risky than Amg Managers. It trades about 0.15 of its potential returns per unit of risk. Amg Managers Brandywine is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  4,004  in Amg Managers Brandywine on September 18, 2024 and sell it today you would earn a total of  67.00  from holding Amg Managers Brandywine or generate 1.67% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Ashmore Emerging Markets  vs.  Amg Managers Brandywine

 Performance 
       Timeline  
Ashmore Emerging Markets 

Risk-Adjusted Performance

6 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in Ashmore Emerging Markets are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Ashmore Emerging is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Amg Managers Brandywine 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Amg Managers Brandywine has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward indicators, Amg Managers is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Ashmore Emerging and Amg Managers Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Ashmore Emerging and Amg Managers

The main advantage of trading using opposite Ashmore Emerging and Amg Managers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ashmore Emerging position performs unexpectedly, Amg Managers 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 Amg Managers will offset losses from the drop in Amg Managers' long position.
The idea behind Ashmore Emerging Markets and Amg Managers Brandywine pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.

Other Complementary Tools

Stocks Directory
Find actively traded stocks across global markets
Price Exposure Probability
Analyze equity upside and downside potential for a given time horizon across multiple markets
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Crypto Correlations
Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins
Sign In To Macroaxis
Sign in to explore Macroaxis' wealth optimization platform and fintech modules