Correlation Between Ashmore Emerging and Columbia Adaptive
Can any of the company-specific risk be diversified away by investing in both Ashmore Emerging and Columbia Adaptive 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 Columbia Adaptive 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 Columbia Adaptive Risk, you can compare the effects of market volatilities on Ashmore Emerging and Columbia Adaptive 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 Columbia Adaptive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ashmore Emerging and Columbia Adaptive.
Diversification Opportunities for Ashmore Emerging and Columbia Adaptive
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ashmore and Columbia is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Ashmore Emerging Markets and Columbia Adaptive Risk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbia Adaptive Risk 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 Columbia Adaptive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Columbia Adaptive Risk has no effect on the direction of Ashmore Emerging i.e., Ashmore Emerging and Columbia Adaptive go up and down completely randomly.
Pair Corralation between Ashmore Emerging and Columbia Adaptive
Assuming the 90 days horizon Ashmore Emerging Markets is expected to generate 2.08 times more return on investment than Columbia Adaptive. However, Ashmore Emerging is 2.08 times more volatile than Columbia Adaptive Risk. It trades about 0.13 of its potential returns per unit of risk. Columbia Adaptive Risk is currently generating about 0.12 per unit of risk. If you would invest 1,304 in Ashmore Emerging Markets on September 7, 2025 and sell it today you would earn a total of 100.00 from holding Ashmore Emerging Markets or generate 7.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ashmore Emerging Markets vs. Columbia Adaptive Risk
Performance |
| Timeline |
| Ashmore Emerging Markets |
| Columbia Adaptive Risk |
Ashmore Emerging and Columbia Adaptive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ashmore Emerging and Columbia Adaptive
The main advantage of trading using opposite Ashmore Emerging and Columbia Adaptive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ashmore Emerging position performs unexpectedly, Columbia Adaptive 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 Columbia Adaptive will offset losses from the drop in Columbia Adaptive's long position.| Ashmore Emerging vs. Ashmore Emerging Markets | Ashmore Emerging vs. Ashmore Emerging Markets | Ashmore Emerging vs. Ashmore Emerging Markets | Ashmore Emerging vs. Ashmore Emerging Markets |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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