Correlation Between Gabelli Global and Ashmore Emerging
Can any of the company-specific risk be diversified away by investing in both Gabelli Global 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 Gabelli Global and Ashmore Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gabelli Global Financial and Ashmore Emerging Markets, you can compare the effects of market volatilities on Gabelli Global 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 Gabelli Global with a short position of Ashmore Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gabelli Global and Ashmore Emerging.
Diversification Opportunities for Gabelli Global and Ashmore Emerging
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Gabelli and Ashmore is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Gabelli Global Financial 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 Gabelli Global 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 Gabelli Global Financial 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 Gabelli Global i.e., Gabelli Global and Ashmore Emerging go up and down completely randomly.
Pair Corralation between Gabelli Global and Ashmore Emerging
Assuming the 90 days horizon Gabelli Global Financial is expected to generate 1.29 times more return on investment than Ashmore Emerging. However, Gabelli Global is 1.29 times more volatile than Ashmore Emerging Markets. It trades about 0.29 of its potential returns per unit of risk. Ashmore Emerging Markets is currently generating about 0.19 per unit of risk. If you would invest 1,872 in Gabelli Global Financial on May 29, 2025 and sell it today you would earn a total of 105.00 from holding Gabelli Global Financial or generate 5.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Gabelli Global Financial vs. Ashmore Emerging Markets
Performance |
| Timeline |
| Gabelli Global Financial |
| Ashmore Emerging Markets |
Gabelli Global and Ashmore Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gabelli Global and Ashmore Emerging
The main advantage of trading using opposite Gabelli Global and Ashmore Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gabelli Global 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.| Gabelli Global vs. Ab Bond Inflation | Gabelli Global vs. Vy Blackrock Inflation | Gabelli Global vs. Cref Inflation Linked Bond | Gabelli Global vs. Great West Inflation Protected Securities |
| Ashmore Emerging vs. Goldman Sachs Financial | Ashmore Emerging vs. Gabelli Global Financial | Ashmore Emerging vs. Angel Oak Financial | Ashmore Emerging vs. 1919 Financial Services |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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