Correlation Between Asg Managed and Deutsche Global

Can any of the company-specific risk be diversified away by investing in both Asg Managed and Deutsche 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 Deutsche 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 Deutsche Global Infrastructure, you can compare the effects of market volatilities on Asg Managed and Deutsche 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 Deutsche Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asg Managed and Deutsche Global.

Diversification Opportunities for Asg Managed and Deutsche Global

-0.77

Correlation Coefficient

Asg Managed  Deutsche Global

Pay attention - limited upside

The 3 months correlation between Asg and Deutsche is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Asg Managed Futures and Deutsche Global Infrastructure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deutsche Global Infr 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 Deutsche Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deutsche Global Infr has no effect on the direction of Asg Managed i.e., Asg Managed and Deutsche Global go up and down completely randomly.

Pair Corralation between Asg Managed and Deutsche Global

Assuming the 90 days horizon Asg Managed Futures is expected to under-perform the Deutsche Global. In addition to that, Asg Managed is 1.0 times more volatile than Deutsche Global Infrastructure. It trades about -0.09 of its total potential returns per unit of risk. Deutsche Global Infrastructure is currently generating about 0.14 per unit of volatility. If you would invest  1,511  in Deutsche Global Infrastructure on December 28, 2024 and sell it today you would earn a total of  103.00  from holding Deutsche Global Infrastructure or generate 6.82% return on investment over 90 days.

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

Asg Managed Futures  vs.  Deutsche Global Infrastructure

Asg Managed Futures

Risk-Adjusted Performance

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.

Deutsche Global Infr

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Deutsche Global Infrastructure are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Deutsche Global may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Asg Managed and Deutsche Global

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

The idea behind Asg Managed Futures and Deutsche Global Infrastructure 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.