Correlation Between Asg Managed and Invesco Emerging

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Can any of the company-specific risk be diversified away by investing in both Asg Managed and Invesco Emerging 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 Asg Managed and Invesco Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asg Managed Futures and Invesco Emerging Markets, you can compare the effects of market volatilities on Asg Managed and Invesco Emerging 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 Asg Managed with a short position of Invesco Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asg Managed and Invesco Emerging.

Diversification Opportunities for Asg Managed and Invesco Emerging

AsgInvescoDiversified AwayAsgInvescoDiversified Away100%
-0.34
  Correlation Coefficient

Very good diversification

The 3 months correlation between Asg and Invesco is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Asg Managed Futures and Invesco Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco Emerging Markets and Asg Managed 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 Asg Managed Futures are associated (or correlated) with Invesco Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco Emerging Markets has no effect on the direction of Asg Managed i.e., Asg Managed and Invesco Emerging go up and down completely randomly.

Pair Corralation between Asg Managed and Invesco Emerging

Assuming the 90 days horizon Asg Managed Futures is expected to under-perform the Invesco Emerging. In addition to that, Asg Managed is 1.69 times more volatile than Invesco Emerging Markets. It trades about -0.03 of its total potential returns per unit of risk. Invesco Emerging Markets is currently generating about 0.06 per unit of volatility. If you would invest  511.00  in Invesco Emerging Markets on November 26, 2024 and sell it today you would earn a total of  8.00  from holding Invesco Emerging Markets or generate 1.57% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Asg Managed Futures  vs.  Invesco Emerging Markets

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -2-1012
JavaScript chart by amCharts 3.21.15AMFAX EMLDX
       Timeline  
Asg Managed Futures 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Asg Managed Futures has generated negative risk-adjusted returns adding no value to fund investors. 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.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb8.58.558.68.658.78.758.8
Invesco Emerging Markets 

Risk-Adjusted Performance

Insignificant

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Invesco Emerging Markets are ranked lower than 4 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental indicators, Invesco Emerging is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb55.055.15.155.2

Asg Managed and Invesco Emerging Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-1.15-0.84-0.53-0.22-0.01470.150.460.771.081.39 0.51.01.52.0
JavaScript chart by amCharts 3.21.15AMFAX EMLDX
       Returns  

Pair Trading with Asg Managed and Invesco Emerging

The main advantage of trading using opposite Asg Managed and Invesco Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asg Managed position performs unexpectedly, Invesco Emerging 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 Invesco Emerging will offset losses from the drop in Invesco Emerging's long position.
The idea behind Asg Managed Futures and Invesco Emerging Markets 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.
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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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.

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