Correlation Between Ashmore Emerging and Rbc Small
Can any of the company-specific risk be diversified away by investing in both Ashmore Emerging and Rbc Small 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 Rbc Small 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 Rbc Small Cap, you can compare the effects of market volatilities on Ashmore Emerging and Rbc Small 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 Rbc Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ashmore Emerging and Rbc Small.
Diversification Opportunities for Ashmore Emerging and Rbc Small
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ashmore and Rbc is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Ashmore Emerging Markets and Rbc Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rbc Small Cap 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 Rbc Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rbc Small Cap has no effect on the direction of Ashmore Emerging i.e., Ashmore Emerging and Rbc Small go up and down completely randomly.
Pair Corralation between Ashmore Emerging and Rbc Small
Assuming the 90 days horizon Ashmore Emerging Markets is expected to generate 0.48 times more return on investment than Rbc Small. However, Ashmore Emerging Markets is 2.09 times less risky than Rbc Small. It trades about 0.28 of its potential returns per unit of risk. Rbc Small Cap is currently generating about 0.01 per unit of risk. If you would invest 858.00 in Ashmore Emerging Markets on September 3, 2025 and sell it today you would earn a total of 43.00 from holding Ashmore Emerging Markets or generate 5.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 53.13% |
| Values | Daily Returns |
Ashmore Emerging Markets vs. Rbc Small Cap
Performance |
| Timeline |
| Ashmore Emerging Markets |
| Rbc Small Cap |
Risk-Adjusted Performance
Weakest
Weak | Strong |
Ashmore Emerging and Rbc Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ashmore Emerging and Rbc Small
The main advantage of trading using opposite Ashmore Emerging and Rbc Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ashmore Emerging position performs unexpectedly, Rbc Small 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 Rbc Small will offset losses from the drop in Rbc Small'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 |
| Rbc Small vs. Global Technology Portfolio | Rbc Small vs. Red Oak Technology | Rbc Small vs. Biotechnology Ultrasector Profund | Rbc Small vs. Janus Global Technology |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |