Correlation Between Abbey Capital and Asg Managed
Can any of the company-specific risk be diversified away by investing in both Abbey Capital 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 Abbey Capital and Asg Managed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Abbey Capital Futures and Asg Managed Futures, you can compare the effects of market volatilities on Abbey Capital 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 Abbey Capital with a short position of Asg Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Abbey Capital and Asg Managed.
Diversification Opportunities for Abbey Capital and Asg Managed
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Abbey and Asg is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Abbey Capital 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 Abbey Capital 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 Abbey Capital 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 Abbey Capital i.e., Abbey Capital and Asg Managed go up and down completely randomly.
Pair Corralation between Abbey Capital and Asg Managed
Assuming the 90 days horizon Abbey Capital Futures is expected to generate 0.6 times more return on investment than Asg Managed. However, Abbey Capital Futures is 1.68 times less risky than Asg Managed. It trades about -0.01 of its potential returns per unit of risk. Asg Managed Futures is currently generating about -0.02 per unit of risk. If you would invest 1,148 in Abbey Capital Futures on August 27, 2024 and sell it today you would lose (37.00) from holding Abbey Capital Futures or give up 3.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Abbey Capital Futures vs. Asg Managed Futures
Performance |
| Timeline |
| Abbey Capital Futures |
| Asg Managed Futures |
Abbey Capital and Asg Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Abbey Capital and Asg Managed
The main advantage of trading using opposite Abbey Capital and Asg Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Abbey Capital 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.| Abbey Capital vs. Abbey Capital Multi | Abbey Capital vs. Vanguard 500 Index | Abbey Capital vs. Vanguard Target Retirement | Abbey Capital vs. Fidelity Balanced Fund |
| 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |