Correlation Between Gateway Equity and Asg Managed
Can any of the company-specific risk be diversified away by investing in both Gateway Equity 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 Gateway Equity and Asg Managed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gateway Equity Call and Asg Managed Futures, you can compare the effects of market volatilities on Gateway Equity 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 Gateway Equity with a short position of Asg Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gateway Equity and Asg Managed.
Diversification Opportunities for Gateway Equity and Asg Managed
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Gateway and Asg is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Gateway Equity Call 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 Gateway Equity 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 Gateway Equity Call 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 Gateway Equity i.e., Gateway Equity and Asg Managed go up and down completely randomly.
Pair Corralation between Gateway Equity and Asg Managed
Assuming the 90 days horizon Gateway Equity Call is expected to generate 0.8 times more return on investment than Asg Managed. However, Gateway Equity Call is 1.25 times less risky than Asg Managed. It trades about 0.19 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 1,942 in Gateway Equity Call on August 30, 2024 and sell it today you would earn a total of 43.00 from holding Gateway Equity Call or generate 2.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gateway Equity Call vs. Asg Managed Futures
Performance |
| Timeline |
| Gateway Equity Call |
| Asg Managed Futures |
Gateway Equity and Asg Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gateway Equity and Asg Managed
The main advantage of trading using opposite Gateway Equity and Asg Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gateway Equity 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.| Gateway Equity vs. Calvert Short Duration | Gateway Equity vs. Vanguard Short Term Federal | Gateway Equity vs. Locorr Longshort Modities | Gateway Equity vs. Astor Longshort Fund |
| Asg Managed vs. Aqr Managed Futures | Asg Managed vs. Pimco Trends Managed | Asg Managed vs. Eaton Vance Global | Asg Managed vs. Aqr Managed Futures |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |