Correlation Between Ashmore Emerging and Campbell Soup
Can any of the company-specific risk be diversified away by investing in both Ashmore Emerging and Campbell Soup 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 Campbell Soup 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 Campbell Soup, you can compare the effects of market volatilities on Ashmore Emerging and Campbell Soup 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 Campbell Soup. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ashmore Emerging and Campbell Soup.
Diversification Opportunities for Ashmore Emerging and Campbell Soup
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Ashmore and Campbell is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Ashmore Emerging Markets and Campbell Soup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Campbell Soup 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 Campbell Soup. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Campbell Soup has no effect on the direction of Ashmore Emerging i.e., Ashmore Emerging and Campbell Soup go up and down completely randomly.
Pair Corralation between Ashmore Emerging and Campbell Soup
Assuming the 90 days horizon Ashmore Emerging Markets is expected to generate 0.78 times more return on investment than Campbell Soup. However, Ashmore Emerging Markets is 1.28 times less risky than Campbell Soup. It trades about 0.07 of its potential returns per unit of risk. Campbell Soup is currently generating about 0.01 per unit of risk. If you would invest 1,335 in Ashmore Emerging Markets on January 19, 2024 and sell it today you would earn a total of 18.00 from holding Ashmore Emerging Markets or generate 1.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ashmore Emerging Markets vs. Campbell Soup
Performance |
| Timeline |
| Ashmore Emerging Markets |
| Campbell Soup |
Ashmore Emerging and Campbell Soup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ashmore Emerging and Campbell Soup
The main advantage of trading using opposite Ashmore Emerging and Campbell Soup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ashmore Emerging position performs unexpectedly, Campbell Soup 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 Campbell Soup will offset losses from the drop in Campbell Soup's long position.| Ashmore Emerging vs. Rationalpier 88 Convertible | Ashmore Emerging vs. Putnam Convertible Incm Gwth | Ashmore Emerging vs. Advent Claymore Convertible | Ashmore Emerging vs. Virtus Convertible |
| Campbell Soup vs. Central Garden Pet | Campbell Soup vs. Central Garden Pet | Campbell Soup vs. The A2 Milk | Campbell Soup vs. Altavoz Entertainment |
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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