Correlation Between Ashmore Emerging and Calvert Bond

Can any of the company-specific risk be diversified away by investing in both Ashmore Emerging and Calvert Bond 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 Calvert Bond 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 Calvert Bond Portfolio, you can compare the effects of market volatilities on Ashmore Emerging and Calvert Bond 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 Calvert Bond. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ashmore Emerging and Calvert Bond.

Diversification Opportunities for Ashmore Emerging and Calvert Bond

0.71

Correlation Coefficient

Ashmore Emerging  Calvert Bond

Poor diversification

The 3 months correlation between Ashmore and Calvert is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Ashmore Emerging Markets and Calvert Bond Portfolio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Bond Portfolio 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 Calvert Bond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Bond Portfolio has no effect on the direction of Ashmore Emerging i.e., Ashmore Emerging and Calvert Bond go up and down completely randomly.

Pair Corralation between Ashmore Emerging and Calvert Bond

Assuming the 90 days horizon Ashmore Emerging Markets is expected to generate 3.42 times more return on investment than Calvert Bond. However, Ashmore Emerging is 3.42 times more volatile than Calvert Bond Portfolio. It trades about 0.17 of its potential returns per unit of risk. Calvert Bond Portfolio is currently generating about 0.14 per unit of risk. If you would invest  1,019  in Ashmore Emerging Markets on May 15, 2025 and sell it today you would earn a total of  106.00  from holding Ashmore Emerging Markets or generate 10.4% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.39%
Values	Daily Returns

Ashmore Emerging Markets  vs.  Calvert Bond Portfolio

Ashmore Emerging Markets

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Ashmore Emerging Markets are ranked lower than 13 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Ashmore Emerging may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Calvert Bond Portfolio

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Calvert Bond Portfolio are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental indicators, Calvert Bond is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Ashmore Emerging and Calvert Bond

The main advantage of trading using opposite Ashmore Emerging and Calvert Bond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ashmore Emerging position performs unexpectedly, Calvert Bond 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 Calvert Bond will offset losses from the drop in Calvert Bond's long position.

The idea behind Ashmore Emerging Markets and Calvert Bond Portfolio pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.