Correlation Between Anfield Universal and ASHX

Can any of the company-specific risk be diversified away by investing in both Anfield Universal and ASHX 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 Anfield Universal and ASHX into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Anfield Universal Fixed and ASHX, you can compare the effects of market volatilities on Anfield Universal and ASHX 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 Anfield Universal with a short position of ASHX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anfield Universal and ASHX.

Diversification Opportunities for Anfield Universal and ASHX

-0.39

Correlation Coefficient

Anfield Universal  ASHX

Very good diversification

The 3 months correlation between Anfield and ASHX is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Anfield Universal Fixed and ASHX in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASHX and Anfield Universal 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 Anfield Universal Fixed are associated (or correlated) with ASHX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASHX has no effect on the direction of Anfield Universal i.e., Anfield Universal and ASHX go up and down completely randomly.

Pair Corralation between Anfield Universal and ASHX

If you would invest  908.00  in Anfield Universal Fixed on September 17, 2024 and sell it today you would earn a total of  7.00  from holding Anfield Universal Fixed or generate 0.77% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	3.08%
Values	Daily Returns

Anfield Universal Fixed  vs.  ASHX

Anfield Universal Fixed

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Anfield Universal Fixed are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable forward indicators, Anfield Universal is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

ASHX

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ASHX has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong technical indicators, ASHX is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Anfield Universal and ASHX

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

The idea behind Anfield Universal Fixed and ASHX 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.