Correlation Between Summit Global and Ashmore Emerging
Can any of the company-specific risk be diversified away by investing in both Summit 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 Summit 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 Summit Global Investments and Ashmore Emerging Markets, you can compare the effects of market volatilities on Summit 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 Summit Global with a short position of Ashmore Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Summit Global and Ashmore Emerging.
Diversification Opportunities for Summit Global and Ashmore Emerging
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Summit and Ashmore is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Summit Global Investments 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 Summit 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 Summit Global Investments 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 Summit Global i.e., Summit Global and Ashmore Emerging go up and down completely randomly.
Pair Corralation between Summit Global and Ashmore Emerging
Assuming the 90 days horizon Summit Global Investments is expected to generate 0.56 times more return on investment than Ashmore Emerging. However, Summit Global Investments is 1.78 times less risky than Ashmore Emerging. It trades about 0.14 of its potential returns per unit of risk. Ashmore Emerging Markets is currently generating about 0.05 per unit of risk. If you would invest 1,850 in Summit Global Investments on September 1, 2025 and sell it today you would earn a total of 63.00 from holding Summit Global Investments or generate 3.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Summit Global Investments vs. Ashmore Emerging Markets
Performance |
| Timeline |
| Summit Global Investments |
| Ashmore Emerging Markets |
Summit Global and Ashmore Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Summit Global and Ashmore Emerging
The main advantage of trading using opposite Summit Global and Ashmore Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Summit 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.| Summit Global vs. Guidemark Large Cap | Summit Global vs. Gmo Equity Allocation | Summit Global vs. Franklin Moderate Allocation | Summit Global vs. Mutual Of America |
| Ashmore Emerging vs. Mid Cap Value Profund | Ashmore Emerging vs. Ultrasmall Cap Profund Ultrasmall Cap | Ashmore Emerging vs. Small Cap Growth Profund | Ashmore Emerging vs. Ultramid Cap Profund Ultramid Cap |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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