Correlation Between Vanguard Total and Ashmore Emerging
Can any of the company-specific risk be diversified away by investing in both Vanguard Total 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 Vanguard Total and Ashmore Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vanguard Total Stock and Ashmore Emerging Markets, you can compare the effects of market volatilities on Vanguard Total 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 Vanguard Total with a short position of Ashmore Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanguard Total and Ashmore Emerging.
Diversification Opportunities for Vanguard Total and Ashmore Emerging
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Vanguard and Ashmore is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Total Stock 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 Vanguard Total 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 Vanguard Total Stock 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 Vanguard Total i.e., Vanguard Total and Ashmore Emerging go up and down completely randomly.
Pair Corralation between Vanguard Total and Ashmore Emerging
Assuming the 90 days horizon Vanguard Total Stock is expected to generate 0.86 times more return on investment than Ashmore Emerging. However, Vanguard Total Stock is 1.16 times less risky than Ashmore Emerging. It trades about 0.22 of its potential returns per unit of risk. Ashmore Emerging Markets is currently generating about 0.17 per unit of risk. If you would invest 14,175 in Vanguard Total Stock on June 5, 2025 and sell it today you would earn a total of 1,277 from holding Vanguard Total Stock or generate 9.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.39% |
| Values | Daily Returns |
Vanguard Total Stock vs. Ashmore Emerging Markets
Performance |
| Timeline |
| Vanguard Total Stock |
| Ashmore Emerging Markets |
Vanguard Total and Ashmore Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vanguard Total and Ashmore Emerging
The main advantage of trading using opposite Vanguard Total and Ashmore Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanguard Total 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.| Vanguard Total vs. Vanguard Total International | Vanguard Total vs. Vanguard Total Bond | Vanguard Total vs. Vanguard Small Cap Index | Vanguard Total vs. Vanguard Reit Index |
| Ashmore Emerging vs. Bbh Intermediate Municipal | Ashmore Emerging vs. Barings High Yield | Ashmore Emerging vs. T Rowe Price | Ashmore Emerging vs. Touchstone Funds Group |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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