Correlation Between IMGP DBi and Asg Managed
Can any of the company-specific risk be diversified away by investing in both IMGP DBi and Asg Managed 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 IMGP DBi and Asg Managed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iMGP DBi Managed and Asg Managed Futures, you can compare the effects of market volatilities on IMGP DBi and Asg Managed 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 IMGP DBi with a short position of Asg Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of IMGP DBi and Asg Managed.
Diversification Opportunities for IMGP DBi and Asg Managed
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between IMGP and Asg is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding iMGP DBi Managed and Asg Managed Futures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asg Managed Futures and IMGP DBi 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 iMGP DBi Managed are associated (or correlated) with Asg Managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asg Managed Futures has no effect on the direction of IMGP DBi i.e., IMGP DBi and Asg Managed go up and down completely randomly.
Pair Corralation between IMGP DBi and Asg Managed
Given the investment horizon of 90 days iMGP DBi Managed is expected to generate 0.97 times more return on investment than Asg Managed. However, iMGP DBi Managed is 1.03 times less risky than Asg Managed. It trades about 0.03 of its potential returns per unit of risk. Asg Managed Futures is currently generating about -0.02 per unit of risk. If you would invest 2,589 in iMGP DBi Managed on August 24, 2024 and sell it today you would earn a total of 124.00 from holding iMGP DBi Managed or generate 4.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
iMGP DBi Managed vs. Asg Managed Futures
Performance |
| Timeline |
| iMGP DBi Managed |
| Asg Managed Futures |
IMGP DBi and Asg Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IMGP DBi and Asg Managed
The main advantage of trading using opposite IMGP DBi and Asg Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IMGP DBi position performs unexpectedly, Asg Managed 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 Managed will offset losses from the drop in Asg Managed's long position.| IMGP DBi vs. KFA Mount Lucas | IMGP DBi vs. Simplify Exchange Traded | IMGP DBi vs. Simplify Interest Rate | IMGP DBi vs. First Trust Managed |
| Asg Managed vs. Ms Global Fixed | Asg Managed vs. Artisan Global Unconstrained | Asg Managed vs. Nuveen Global Real | Asg Managed vs. Vanguard Global Credit |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Commodity Directory Find actively traded commodities issued by global exchanges |