Correlation Between Asg Managed and Muhlenkamp Fund
Can any of the company-specific risk be diversified away by investing in both Asg Managed and Muhlenkamp Fund 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 Muhlenkamp Fund 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 Muhlenkamp Fund Institutional, you can compare the effects of market volatilities on Asg Managed and Muhlenkamp Fund 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 Muhlenkamp Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asg Managed and Muhlenkamp Fund.
Diversification Opportunities for Asg Managed and Muhlenkamp Fund
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Asg and Muhlenkamp is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Asg Managed Futures and Muhlenkamp Fund Institutional in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Muhlenkamp Fund Inst 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 Muhlenkamp Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Muhlenkamp Fund Inst has no effect on the direction of Asg Managed i.e., Asg Managed and Muhlenkamp Fund go up and down completely randomly.
Pair Corralation between Asg Managed and Muhlenkamp Fund
Assuming the 90 days horizon Asg Managed Futures is expected to generate 0.34 times more return on investment than Muhlenkamp Fund. However, Asg Managed Futures is 2.91 times less risky than Muhlenkamp Fund. It trades about -0.03 of its potential returns per unit of risk. Muhlenkamp Fund Institutional is currently generating about -0.04 per unit of risk. If you would invest 875.00 in Asg Managed Futures on October 23, 2024 and sell it today you would lose (4.00) from holding Asg Managed Futures or give up 0.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
Asg Managed Futures vs. Muhlenkamp Fund Institutional
Performance |
| Timeline |
| Asg Managed Futures |
| Muhlenkamp Fund Inst |
Asg Managed and Muhlenkamp Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asg Managed and Muhlenkamp Fund
The main advantage of trading using opposite Asg Managed and Muhlenkamp Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asg Managed position performs unexpectedly, Muhlenkamp Fund 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 Muhlenkamp Fund will offset losses from the drop in Muhlenkamp Fund's long position.| Asg Managed vs. Extended Market Index | Asg Managed vs. Legg Mason Partners | Asg Managed vs. Vanguard Emerging Markets | Asg Managed vs. Sp Midcap Index |
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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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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