Correlation Between Asg Global and Simt Small
Can any of the company-specific risk be diversified away by investing in both Asg Global and Simt Small 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 Global and Simt Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asg Global Alternatives and Simt Small Cap, you can compare the effects of market volatilities on Asg Global and Simt Small 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 Global with a short position of Simt Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asg Global and Simt Small.
Diversification Opportunities for Asg Global and Simt Small
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Asg and Simt is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Asg Global Alternatives and Simt Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simt Small Cap and Asg Global 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 Global Alternatives are associated (or correlated) with Simt Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simt Small Cap has no effect on the direction of Asg Global i.e., Asg Global and Simt Small go up and down completely randomly.
Pair Corralation between Asg Global and Simt Small
Assuming the 90 days horizon Asg Global Alternatives is expected to generate 0.17 times more return on investment than Simt Small. However, Asg Global Alternatives is 5.9 times less risky than Simt Small. It trades about -0.16 of its potential returns per unit of risk. Simt Small Cap is currently generating about -0.27 per unit of risk. If you would invest 1,066 in Asg Global Alternatives on October 11, 2024 and sell it today you would lose (12.00) from holding Asg Global Alternatives or give up 1.13% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Asg Global Alternatives vs. Simt Small Cap
Performance |
Timeline |
Asg Global Alternatives |
Simt Small Cap |
Asg Global and Simt Small Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Asg Global and Simt Small
The main advantage of trading using opposite Asg Global and Simt Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asg Global position performs unexpectedly, Simt Small 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 Simt Small will offset losses from the drop in Simt Small's long position.Asg Global vs. Amg Managers Centersquare | Asg Global vs. Nexpoint Real Estate | Asg Global vs. Redwood Real Estate | Asg Global vs. Deutsche Real Estate |
Simt Small vs. The Hartford Healthcare | Simt Small vs. Prudential Health Sciences | Simt Small vs. Baillie Gifford Health | Simt Small vs. Alphacentric Lifesci Healthcare |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
Transaction History View history of all your transactions and understand their impact on performance |