Correlation Between Ab Bond and Asg Managed
Can any of the company-specific risk be diversified away by investing in both Ab Bond 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 Ab Bond and Asg Managed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab Bond Inflation and Asg Managed Futures, you can compare the effects of market volatilities on Ab Bond 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 Ab Bond with a short position of Asg Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Bond and Asg Managed.
Diversification Opportunities for Ab Bond and Asg Managed
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between ABNYX and Asg is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Ab Bond Inflation 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 Ab Bond 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 Ab Bond Inflation 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 Ab Bond i.e., Ab Bond and Asg Managed go up and down completely randomly.
Pair Corralation between Ab Bond and Asg Managed
Assuming the 90 days horizon Ab Bond Inflation is expected to under-perform the Asg Managed. But the mutual fund apears to be less risky and, when comparing its historical volatility, Ab Bond Inflation is 3.01 times less risky than Asg Managed. The mutual fund trades about -0.1 of its potential returns per unit of risk. The Asg Managed Futures is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 859.00 in Asg Managed Futures on October 14, 2024 and sell it today you would earn a total of 18.00 from holding Asg Managed Futures or generate 2.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab Bond Inflation vs. Asg Managed Futures
Performance |
| Timeline |
| Ab Bond Inflation |
| Asg Managed Futures |
Ab Bond and Asg Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Bond and Asg Managed
The main advantage of trading using opposite Ab Bond and Asg Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Bond 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.| Ab Bond vs. Inverse Emerging Markets | Ab Bond vs. Franklin Emerging Market | Ab Bond vs. Calvert Developed Market | Ab Bond vs. Fidelity New Markets |
| Asg Managed vs. Aqr Managed Futures | Asg Managed vs. Pimco Trends Managed | Asg Managed vs. Eaton Vance Global | Asg Managed vs. Aqr Managed Futures |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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