Correlation Between Firsthand Alternative and Asg Global
Can any of the company-specific risk be diversified away by investing in both Firsthand Alternative 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 Firsthand Alternative and Asg Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Firsthand Alternative Energy and Asg Global Alternatives, you can compare the effects of market volatilities on Firsthand Alternative 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 Firsthand Alternative with a short position of Asg Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Firsthand Alternative and Asg Global.
Diversification Opportunities for Firsthand Alternative and Asg Global
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Firsthand and Asg is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Firsthand Alternative Energy 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 Firsthand Alternative 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 Firsthand Alternative Energy 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 Firsthand Alternative i.e., Firsthand Alternative and Asg Global go up and down completely randomly.
Pair Corralation between Firsthand Alternative and Asg Global
Assuming the 90 days horizon Firsthand Alternative Energy is expected to generate 3.75 times more return on investment than Asg Global. However, Firsthand Alternative is 3.75 times more volatile than Asg Global Alternatives. It trades about 0.08 of its potential returns per unit of risk. Asg Global Alternatives is currently generating about 0.25 per unit of risk. If you would invest 999.00 in Firsthand Alternative Energy on September 3, 2024 and sell it today you would earn a total of 22.00 from holding Firsthand Alternative Energy or generate 2.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Firsthand Alternative Energy vs. Asg Global Alternatives
Performance |
| Timeline |
| Firsthand Alternative |
| Asg Global Alternatives |
Firsthand Alternative and Asg Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Firsthand Alternative and Asg Global
The main advantage of trading using opposite Firsthand Alternative and Asg Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Firsthand Alternative 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.| Firsthand Alternative vs. Guinness Atkinson Alternative | Firsthand Alternative vs. Calvert Global Energy | Firsthand Alternative vs. New Alternatives Fund | Firsthand Alternative vs. Shelton Green Alpha |
| Asg Global vs. Nuveen Minnesota Municipal | Asg Global vs. T Rowe Price | Asg Global vs. T Rowe Price | Asg Global vs. Gamco Global Telecommunications |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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