Correlation Between Arrow Managed and Asg Managed
Can any of the company-specific risk be diversified away by investing in both Arrow Managed 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 Arrow Managed and Asg Managed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Arrow Managed Futures and Asg Managed Futures, you can compare the effects of market volatilities on Arrow Managed 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 Arrow Managed with a short position of Asg Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arrow Managed and Asg Managed.
Diversification Opportunities for Arrow Managed and Asg Managed
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Arrow and Asg is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Arrow Managed Futures 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 Arrow 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 Arrow Managed Futures 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 Arrow Managed i.e., Arrow Managed and Asg Managed go up and down completely randomly.
Pair Corralation between Arrow Managed and Asg Managed
Assuming the 90 days horizon Arrow Managed Futures is expected to under-perform the Asg Managed. In addition to that, Arrow Managed is 2.31 times more volatile than Asg Managed Futures. It trades about -0.06 of its total potential returns per unit of risk. Asg Managed Futures is currently generating about -0.14 per unit of volatility. If you would invest 878.00 in Asg Managed Futures on September 23, 2024 and sell it today you would lose (12.00) from holding Asg Managed Futures or give up 1.37% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Arrow Managed Futures vs. Asg Managed Futures
Performance |
Timeline |
Arrow Managed Futures |
Asg Managed Futures |
Arrow Managed and Asg Managed Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Arrow Managed and Asg Managed
The main advantage of trading using opposite Arrow Managed and Asg Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arrow Managed 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.Arrow Managed vs. Arrow Managed Futures | Arrow Managed vs. Arrow Dwa Balanced | Arrow Managed vs. Arrow Dwa Balanced | Arrow Managed vs. Arrow Dwa Balanced |
Asg Managed vs. Asg Managed Futures | Asg Managed vs. Natixis Oakmark | Asg Managed vs. Natixis Oakmark International | Asg Managed vs. Natixis Oakmark International |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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