Correlation Between Quantitative and Asg Managed

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

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

Diversification Opportunities for Quantitative and Asg Managed

-0.03

Correlation Coefficient

Quantitative  Asg Managed

Good diversification

The 3 months correlation between Quantitative and Asg is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Quantitative Longshort Equity 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 Quantitative 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 Quantitative Longshort Equity 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 Quantitative i.e., Quantitative and Asg Managed go up and down completely randomly.

Pair Corralation between Quantitative and Asg Managed

Assuming the 90 days horizon Quantitative Longshort Equity is expected to under-perform the Asg Managed. In addition to that, Quantitative is 1.61 times more volatile than Asg Managed Futures. It trades about -0.12 of its total potential returns per unit of risk. Asg Managed Futures is currently generating about -0.06 per unit of volatility. If you would invest  871.00  in Asg Managed Futures on December 1, 2024 and sell it today you would lose (22.00) from holding Asg Managed Futures or give up 2.53% of portfolio value over 90 days.

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

Quantitative Longshort Equity  vs.  Asg Managed Futures

Quantitative Longshort

Risk-Adjusted Performance

Very Weak

Over the last 90 days Quantitative Longshort Equity has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

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.

Pair Trading with Quantitative and Asg Managed

The main advantage of trading using opposite Quantitative and Asg Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Quantitative 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.

The idea behind Quantitative Longshort Equity and Asg Managed Futures 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.

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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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.