Correlation Between Global Gold and Asg Global
Can any of the company-specific risk be diversified away by investing in both Global Gold and Asg Global 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 Global Gold and Asg Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Gold Fund and Asg Global Alternatives, you can compare the effects of market volatilities on Global Gold and Asg Global 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 Global Gold with a short position of Asg Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Gold and Asg Global.
Diversification Opportunities for Global Gold and Asg Global
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Global and Asg is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Global Gold Fund and Asg Global Alternatives in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asg Global Alternatives and Global Gold 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 Global Gold Fund are associated (or correlated) with Asg Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asg Global Alternatives has no effect on the direction of Global Gold i.e., Global Gold and Asg Global go up and down completely randomly.
Pair Corralation between Global Gold and Asg Global
Assuming the 90 days horizon Global Gold Fund is expected to generate 4.24 times more return on investment than Asg Global. However, Global Gold is 4.24 times more volatile than Asg Global Alternatives. It trades about 0.41 of its potential returns per unit of risk. Asg Global Alternatives is currently generating about 0.4 per unit of risk. If you would invest 1,211 in Global Gold Fund on November 3, 2024 and sell it today you would earn a total of 138.00 from holding Global Gold Fund or generate 11.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global Gold Fund vs. Asg Global Alternatives
Performance |
| Timeline |
| Global Gold Fund |
| Asg Global Alternatives |
Global Gold and Asg Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Gold and Asg Global
The main advantage of trading using opposite Global Gold and Asg Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Gold position performs unexpectedly, Asg Global 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 Global will offset losses from the drop in Asg Global's long position.| Global Gold vs. Eagle Mlp Strategy | Global Gold vs. Dodge Cox Emerging | Global Gold vs. Vy Jpmorgan Emerging | Global Gold vs. Nasdaq 100 2x Strategy |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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