Correlation Between OneAscent International and OneAscent Emerging

Can any of the company-specific risk be diversified away by investing in both OneAscent International and OneAscent 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 OneAscent International and OneAscent Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between OneAscent International Equity and OneAscent Emerging Markets, you can compare the effects of market volatilities on OneAscent International and OneAscent 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 OneAscent International with a short position of OneAscent Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of OneAscent International and OneAscent Emerging.

Diversification Opportunities for OneAscent International and OneAscent Emerging

0.0

Correlation Coefficient

OneAscent International  OneAscent Emerging

Pay attention - limited upside

The 3 months correlation between OneAscent and OneAscent is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding OneAscent International Equity and OneAscent Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OneAscent Emerging and OneAscent International 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 OneAscent International Equity are associated (or correlated) with OneAscent Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OneAscent Emerging has no effect on the direction of OneAscent International i.e., OneAscent International and OneAscent Emerging go up and down completely randomly.

Pair Corralation between OneAscent International and OneAscent Emerging

If you would invest  0.00  in OneAscent Emerging Markets on September 4, 2024 and sell it today you would earn a total of  0.00  from holding OneAscent Emerging Markets or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	4.76%
Values	Daily Returns

OneAscent International Equity  vs.  OneAscent Emerging Markets

OneAscent International

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in OneAscent International Equity are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy forward indicators, OneAscent International is not utilizing all of its potentials. The newest stock price disarray, may contribute to short-term losses for the investors.

OneAscent Emerging

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days OneAscent Emerging Markets has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical and fundamental indicators, OneAscent Emerging is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with OneAscent International and OneAscent Emerging

The main advantage of trading using opposite OneAscent International and OneAscent Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OneAscent International position performs unexpectedly, OneAscent 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 OneAscent Emerging will offset losses from the drop in OneAscent Emerging's long position.

The idea behind OneAscent International Equity and OneAscent Emerging Markets 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.

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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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..