Correlation Between Asg Global and Small Cap
Can any of the company-specific risk be diversified away by investing in both Asg Global and Small Cap 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 Global and Small Cap into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asg Global Alternatives and Small Cap Equity, you can compare the effects of market volatilities on Asg Global and Small Cap 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 Global with a short position of Small Cap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asg Global and Small Cap.
Diversification Opportunities for Asg Global and Small Cap
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Asg and Small is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Asg Global Alternatives and Small Cap Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Small Cap Equity and Asg Global 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 Global Alternatives are associated (or correlated) with Small Cap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Small Cap Equity has no effect on the direction of Asg Global i.e., Asg Global and Small Cap go up and down completely randomly.
Pair Corralation between Asg Global and Small Cap
Assuming the 90 days horizon Asg Global Alternatives is expected to generate 0.34 times more return on investment than Small Cap. However, Asg Global Alternatives is 2.97 times less risky than Small Cap. It trades about -0.15 of its potential returns per unit of risk. Small Cap Equity is currently generating about -0.23 per unit of risk. If you would invest 1,066 in Asg Global Alternatives on October 11, 2024 and sell it today you would lose (12.00) from holding Asg Global Alternatives or give up 1.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asg Global Alternatives vs. Small Cap Equity
Performance |
| Timeline |
| Asg Global Alternatives |
| Small Cap Equity |
Asg Global and Small Cap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asg Global and Small Cap
The main advantage of trading using opposite Asg Global and Small Cap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asg Global position performs unexpectedly, Small Cap 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 Small Cap will offset losses from the drop in Small Cap's long position.| Asg Global vs. Amg Managers Centersquare | Asg Global vs. Nexpoint Real Estate | Asg Global vs. Redwood Real Estate | Asg Global vs. Deutsche Real Estate |
| Small Cap vs. Barings Global Floating | Small Cap vs. Aqr Global Macro | Small Cap vs. Asg Global Alternatives | Small Cap vs. Alliancebernstein Global Highome |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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