Correlation Between Ashmore Emerging and Nuveen Georgia
Can any of the company-specific risk be diversified away by investing in both Ashmore Emerging and Nuveen Georgia 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 Nuveen Georgia 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 Nuveen Georgia Quality, you can compare the effects of market volatilities on Ashmore Emerging and Nuveen Georgia 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 Nuveen Georgia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ashmore Emerging and Nuveen Georgia.
Diversification Opportunities for Ashmore Emerging and Nuveen Georgia
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ashmore and Nuveen is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Ashmore Emerging Markets and Nuveen Georgia Quality in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Georgia Quality 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 Nuveen Georgia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Georgia Quality has no effect on the direction of Ashmore Emerging i.e., Ashmore Emerging and Nuveen Georgia go up and down completely randomly.
Pair Corralation between Ashmore Emerging and Nuveen Georgia
If you would invest 1,180 in Nuveen Georgia Quality on October 2, 2024 and sell it today you would earn a total of 0.00 from holding Nuveen Georgia Quality or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 4.76% |
Values | Daily Returns |
Ashmore Emerging Markets vs. Nuveen Georgia Quality
Performance |
Timeline |
Ashmore Emerging Markets |
Nuveen Georgia Quality |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Ashmore Emerging and Nuveen Georgia Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ashmore Emerging and Nuveen Georgia
The main advantage of trading using opposite Ashmore Emerging and Nuveen Georgia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ashmore Emerging position performs unexpectedly, Nuveen Georgia 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 Nuveen Georgia will offset losses from the drop in Nuveen Georgia's long position.Ashmore Emerging vs. Inverse High Yield | Ashmore Emerging vs. Siit High Yield | Ashmore Emerging vs. Multi Manager High Yield | Ashmore Emerging vs. Artisan High Income |
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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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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