Correlation Between ASHX and Anfield Universal
Can any of the company-specific risk be diversified away by investing in both ASHX and Anfield Universal 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 ASHX and Anfield Universal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ASHX and Anfield Universal Fixed, you can compare the effects of market volatilities on ASHX and Anfield Universal 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 ASHX with a short position of Anfield Universal. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASHX and Anfield Universal.
Diversification Opportunities for ASHX and Anfield Universal
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ASHX and Anfield is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ASHX and Anfield Universal Fixed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anfield Universal Fixed and ASHX 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 ASHX are associated (or correlated) with Anfield Universal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anfield Universal Fixed has no effect on the direction of ASHX i.e., ASHX and Anfield Universal go up and down completely randomly.
Pair Corralation between ASHX and Anfield Universal
If you would invest 911.00 in Anfield Universal Fixed on December 5, 2024 and sell it today you would earn a total of 14.00 from holding Anfield Universal Fixed or generate 1.54% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
ASHX vs. Anfield Universal Fixed
Performance |
Timeline |
ASHX |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Anfield Universal Fixed |
ASHX and Anfield Universal Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ASHX and Anfield Universal
The main advantage of trading using opposite ASHX and Anfield Universal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASHX position performs unexpectedly, Anfield Universal 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 Anfield Universal will offset losses from the drop in Anfield Universal's long position.The idea behind ASHX and Anfield Universal Fixed 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.Anfield Universal vs. FlexShares Core Select | Anfield Universal vs. Anfield Equity Sector | Anfield Universal vs. WisdomTree Interest Rate |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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