Correlation Between Asg Managed and Asg Global

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

By analyzing existing cross correlation between Asg Managed Futures and Asg Global Alternatives, you can compare the effects of market volatilities on Asg Managed and Asg Global 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 Asg Managed with a short position of Asg Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asg Managed and Asg Global.

Diversification Opportunities for Asg Managed and Asg Global

-0.33

Correlation Coefficient

Asg Managed  Asg Global

Very good diversification

The 3 months correlation between Asg and Asg is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Asg Managed Futures and Asg Global Alternatives in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asg Global Alternatives and Asg Managed 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 Asg Managed Futures are associated (or correlated) with Asg Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asg Global Alternatives has no effect on the direction of Asg Managed i.e., Asg Managed and Asg Global go up and down completely randomly.

Pair Corralation between Asg Managed and Asg Global

Assuming the 90 days horizon Asg Managed Futures is expected to generate 1.56 times more return on investment than Asg Global. However, Asg Managed is 1.56 times more volatile than Asg Global Alternatives. It trades about 0.05 of its potential returns per unit of risk. Asg Global Alternatives is currently generating about 0.05 per unit of risk. If you would invest  865.00  in Asg Managed Futures on September 5, 2024 and sell it today you would earn a total of  11.00  from holding Asg Managed Futures or generate 1.27% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Asg Managed Futures  vs.  Asg Global Alternatives

Asg Managed Futures

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Asg Managed Futures has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Asg Managed is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Asg Global Alternatives

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Asg Global Alternatives are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Asg Global is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Asg Managed and Asg Global

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

The idea behind Asg Managed Futures and Asg Global Alternatives 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.

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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.