Correlation Between Asg Managed and Otter Creek
Can any of the company-specific risk be diversified away by investing in both Asg Managed and Otter Creek 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 Otter Creek 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 Otter Creek Longshort, you can compare the effects of market volatilities on Asg Managed and Otter Creek 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 Otter Creek. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asg Managed and Otter Creek.
Diversification Opportunities for Asg Managed and Otter Creek
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Asg and Otter is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Asg Managed Futures and Otter Creek Longshort in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Otter Creek Longshort 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 Otter Creek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Otter Creek Longshort has no effect on the direction of Asg Managed i.e., Asg Managed and Otter Creek go up and down completely randomly.
Pair Corralation between Asg Managed and Otter Creek
Assuming the 90 days horizon Asg Managed Futures is expected to under-perform the Otter Creek. But the mutual fund apears to be less risky and, when comparing its historical volatility, Asg Managed Futures is 1.03 times less risky than Otter Creek. The mutual fund trades about -0.12 of its potential returns per unit of risk. The Otter Creek Longshort is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,404 in Otter Creek Longshort on September 1, 2024 and sell it today you would earn a total of 123.00 from holding Otter Creek Longshort or generate 8.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Asg Managed Futures vs. Otter Creek Longshort
Performance |
| Timeline |
| Asg Managed Futures |
| Otter Creek Longshort |
Asg Managed and Otter Creek Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asg Managed and Otter Creek
The main advantage of trading using opposite Asg Managed and Otter Creek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asg Managed position performs unexpectedly, Otter Creek 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 Otter Creek will offset losses from the drop in Otter Creek's long position.| Asg Managed vs. Aqr Managed Futures | Asg Managed vs. Pimco Trends Managed | Asg Managed vs. Eaton Vance Global | Asg Managed vs. Aqr Managed Futures |
| Otter Creek vs. Boston Partners Global | Otter Creek vs. Asg Managed Futures | Otter Creek vs. Pimco Trends Managed | Otter Creek vs. Aqr Long Short Equity |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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