Correlation Between Diamond Hill and Asg Managed
Can any of the company-specific risk be diversified away by investing in both Diamond Hill and Asg Managed 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 Diamond Hill and Asg Managed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Diamond Hill Long Short and Asg Managed Futures, you can compare the effects of market volatilities on Diamond Hill and Asg Managed 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 Diamond Hill with a short position of Asg Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Diamond Hill and Asg Managed.
Diversification Opportunities for Diamond Hill and Asg Managed
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Diamond and Asg is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Diamond Hill Long Short and Asg Managed Futures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asg Managed Futures and Diamond Hill 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 Diamond Hill Long Short are associated (or correlated) with Asg Managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asg Managed Futures has no effect on the direction of Diamond Hill i.e., Diamond Hill and Asg Managed go up and down completely randomly.
Pair Corralation between Diamond Hill and Asg Managed
Assuming the 90 days horizon Diamond Hill Long Short is expected to generate 0.62 times more return on investment than Asg Managed. However, Diamond Hill Long Short is 1.63 times less risky than Asg Managed. It trades about 0.12 of its potential returns per unit of risk. Asg Managed Futures is currently generating about -0.1 per unit of risk. If you would invest 2,709 in Diamond Hill Long Short on December 28, 2024 and sell it today you would earn a total of 100.00 from holding Diamond Hill Long Short or generate 3.69% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Diamond Hill Long Short vs. Asg Managed Futures
Performance |
Timeline |
Diamond Hill Long |
Asg Managed Futures |
Diamond Hill and Asg Managed Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Diamond Hill and Asg Managed
The main advantage of trading using opposite Diamond Hill and Asg Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Diamond Hill position performs unexpectedly, Asg Managed 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 Managed will offset losses from the drop in Asg Managed's long position.Diamond Hill vs. Gateway Fund Class | Diamond Hill vs. Aqr Managed Futures | Diamond Hill vs. Boston Partners Longshort | Diamond Hill vs. Calamos Market Neutral |
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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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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