Ashmore Emerging Correlations

IGAEX Fund  USD 8.06  0.04  0.50%   
The correlation of Ashmore Emerging is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Ashmore Emerging moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Ashmore Emerging Markets moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.

Good diversification

The correlation between Ashmore Emerging Markets and NYA is -0.05 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Ashmore Emerging Markets and NYA in the same portfolio, assuming nothing else is changed.
Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in Ashmore Emerging Markets. Also, note that the market value of any Mutual Fund could be tightly coupled with the direction of predictive economic indicators such as signals in income.
  
The ability to find closely correlated positions to Ashmore Emerging could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Ashmore Emerging when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Ashmore Emerging - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Ashmore Emerging Markets to buy it.

Moving together with Ashmore Mutual Fund

  0.79EMCIX Ashmore Emerging MarketsPairCorr
  0.92EMKIX Ashmore Emerging MarketsPairCorr
  0.87EMKCX Ashmore Emerging MarketsPairCorr
  0.87EMKAX Ashmore Emerging MarketsPairCorr
  0.73ESCIX Ashmore Emerging MarketsPairCorr
  0.9ESDAX Ashmore Emerging MarketsPairCorr
  0.78ESSCX Ashmore Emerging MarketsPairCorr
  0.72ESSAX Ashmore Emerging MarketsPairCorr
  0.79ECDAX Ashmore Emerging MarketsPairCorr

Related Correlations Analysis

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.
High positive correlations   
IIFTXEMCIX
FFOPXIIFTX
VWINXIGAEX
FFOPXEMCIX
IGAEXEMCIX
FFOPXIGAEX
  
High negative correlations   
ESFAXEMQIX
EMQIXEMCIX
IIFTXEMQIX
ESSAXESFAX
VWINXESFAX
ESFAXEMFIX

Risk-Adjusted Indicators

There is a big difference between Ashmore Mutual Fund performing well and Ashmore Emerging Mutual Fund doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Ashmore Emerging's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.
Mean DeviationJensen AlphaSortino RatioTreynor RatioSemi DeviationExpected ShortfallPotential UpsideValue @RiskMaximum Drawdown
EMCIX  0.17  0.04 (0.34) 0.81  0.00 
 0.37 
 1.09 
EMFIX  0.61 (0.09)(0.10) 0.04  0.76 
 1.23 
 3.70 
EMQIX  0.55 (0.09)(0.15) 0.00  0.70 
 1.29 
 3.31 
ESFAX  0.29 (0.04) 0.00 (0.41) 0.00 
 0.43 
 2.31 
ESSAX  0.51 (0.05)(0.09) 0.08  0.62 
 1.27 
 3.67 
IGAEX  0.33  0.10 (0.11)(2.63) 0.12 
 0.76 
 3.10 
IIFTX  0.24  0.04 (0.13) 0.23  0.00 
 0.65 
 2.09 
FFOPX  0.46 (0.02)(0.06) 0.11  0.59 
 1.08 
 3.35 
GAXCX  0.52 (0.06)(0.07) 0.07  0.87 
 1.20 
 3.83 
VWINX  0.33  0.05 (0.18)(0.28) 0.54 
 0.65 
 3.82 

Be your own money manager

Our tools can tell you how much better you can do entering a position in Ashmore Emerging without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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Already Invested in Ashmore Emerging Markets?

The danger of trading Ashmore Emerging Markets is mainly related to its market volatility and Mutual Fund specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of Ashmore Emerging is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than Ashmore Emerging. The Shape ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Ashmore Emerging Markets is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in Ashmore Emerging Markets. Also, note that the market value of any Mutual Fund could be tightly coupled with the direction of predictive economic indicators such as signals in income.
Note that the Ashmore Emerging Markets information on this page should be used as a complementary analysis to other Ashmore Emerging's statistical models used 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..

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When running Ashmore Emerging's price analysis, check to measure Ashmore Emerging's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Ashmore Emerging is operating at the current time. Most of Ashmore Emerging's value examination focuses on studying past and present price action to predict the probability of Ashmore Emerging's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Ashmore Emerging's price. Additionally, you may evaluate how the addition of Ashmore Emerging to your portfolios can decrease your overall portfolio volatility.
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Please note, there is a significant difference between Ashmore Emerging's value and its price as these two are different measures arrived at by different means. Investors typically determine if Ashmore Emerging is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Ashmore Emerging's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.