Correlation Between Real Estate and Ashmore Emerging
Can any of the company-specific risk be diversified away by investing in both Real Estate 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 Real Estate and Ashmore Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Real Estate Ultrasector and Ashmore Emerging Markets, you can compare the effects of market volatilities on Real Estate 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 Real Estate with a short position of Ashmore Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Real Estate and Ashmore Emerging.
Diversification Opportunities for Real Estate and Ashmore Emerging
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Real and Ashmore is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Real Estate Ultrasector 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 Real Estate 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 Real Estate Ultrasector 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 Real Estate i.e., Real Estate and Ashmore Emerging go up and down completely randomly.
Pair Corralation between Real Estate and Ashmore Emerging
Assuming the 90 days horizon Real Estate is expected to generate 1.29 times less return on investment than Ashmore Emerging. In addition to that, Real Estate is 6.24 times more volatile than Ashmore Emerging Markets. It trades about 0.04 of its total potential returns per unit of risk. Ashmore Emerging Markets is currently generating about 0.29 per unit of volatility. If you would invest 558.00 in Ashmore Emerging Markets on May 28, 2025 and sell it today you would earn a total of 21.00 from holding Ashmore Emerging Markets or generate 3.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Real Estate Ultrasector vs. Ashmore Emerging Markets
Performance |
| Timeline |
| Real Estate Ultrasector |
| Ashmore Emerging Markets |
Real Estate and Ashmore Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Real Estate and Ashmore Emerging
The main advantage of trading using opposite Real Estate and Ashmore Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Real Estate 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.| Real Estate vs. Vanguard Reit Index | Real Estate vs. Aew Real Estate | Real Estate vs. Sa Real Estate | Real Estate vs. Davis Real Estate |
| Ashmore Emerging vs. The Short Term Municipal | Ashmore Emerging vs. Flexible Bond Portfolio | Ashmore Emerging vs. California Municipal Portfolio | Ashmore Emerging vs. Calvert Bond Portfolio |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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