Correlation Between Tfa Alphagen and Asg Managed

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

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

Diversification Opportunities for Tfa Alphagen and Asg Managed

0.36

Correlation Coefficient

Tfa Alphagen  Asg Managed

Weak diversification

The 3 months correlation between Tfa and Asg is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Tfa Alphagen Growth 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 Tfa Alphagen 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 Tfa Alphagen Growth 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 Tfa Alphagen i.e., Tfa Alphagen and Asg Managed go up and down completely randomly.

Pair Corralation between Tfa Alphagen and Asg Managed

Assuming the 90 days horizon Tfa Alphagen Growth is expected to generate 1.27 times more return on investment than Asg Managed. However, Tfa Alphagen is 1.27 times more volatile than Asg Managed Futures. It trades about 0.09 of its potential returns per unit of risk. Asg Managed Futures is currently generating about -0.01 per unit of risk. If you would invest  913.00  in Tfa Alphagen Growth on October 9, 2024 and sell it today you would earn a total of  195.00  from holding Tfa Alphagen Growth or generate 21.36% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Tfa Alphagen Growth  vs.  Asg Managed Futures

Tfa Alphagen Growth

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Tfa Alphagen Growth are ranked lower than 4 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Tfa Alphagen is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Asg Managed Futures

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Asg Managed Futures are ranked lower than 1 (%) of all funds and portfolios of funds over the last 90 days. 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 Tfa Alphagen and Asg Managed

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

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