Correlation Between Allspring Special and Ashmore Emerging

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

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

Diversification Opportunities for Allspring Special and Ashmore Emerging

-0.02

Correlation Coefficient

Allspring Special  Ashmore Emerging

Good diversification

The 3 months correlation between Allspring and Ashmore is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Allspring Special Internationa 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 Allspring Special 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 Allspring Special International 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 Allspring Special i.e., Allspring Special and Ashmore Emerging go up and down completely randomly.

Pair Corralation between Allspring Special and Ashmore Emerging

Assuming the 90 days horizon Allspring Special International is expected to under-perform the Ashmore Emerging. In addition to that, Allspring Special is 3.12 times more volatile than Ashmore Emerging Markets. It trades about -0.1 of its total potential returns per unit of risk. Ashmore Emerging Markets is currently generating about 0.1 per unit of volatility. If you would invest  570.00  in Ashmore Emerging Markets on September 16, 2024 and sell it today you would earn a total of  8.00  from holding Ashmore Emerging Markets or generate 1.4% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Allspring Special Internationa  vs.  Ashmore Emerging Markets

Allspring Special

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Allspring Special International has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Allspring Special is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Ashmore Emerging Markets

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Ashmore Emerging Markets are ranked lower than 7 (%) 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.

Pair Trading with Allspring Special and Ashmore Emerging

The main advantage of trading using opposite Allspring Special and Ashmore Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allspring Special 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.

The idea behind Allspring Special International and Ashmore 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.