Correlation Between All Asset and Furyax
Can any of the company-specific risk be diversified away by investing in both All Asset and Furyax 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 All Asset and Furyax into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between All Asset Fund and Furyax, you can compare the effects of market volatilities on All Asset and Furyax 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 All Asset with a short position of Furyax. Check out your portfolio center. Please also check ongoing floating volatility patterns of All Asset and Furyax.
Diversification Opportunities for All Asset and Furyax
Very weak diversification
The 3 months correlation between All and Furyax is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding All Asset Fund and Furyax in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Furyax and All Asset 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 All Asset Fund are associated (or correlated) with Furyax. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Furyax has no effect on the direction of All Asset i.e., All Asset and Furyax go up and down completely randomly.
Pair Corralation between All Asset and Furyax
Assuming the 90 days horizon All Asset is expected to generate 6.62 times less return on investment than Furyax. But when comparing it to its historical volatility, All Asset Fund is 1.72 times less risky than Furyax. It trades about 0.14 of its potential returns per unit of risk. Furyax is currently generating about 0.54 of returns per unit of risk over similar time horizon. If you would invest 987.00 in Furyax on October 26, 2024 and sell it today you would earn a total of 48.00 from holding Furyax or generate 4.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 77.78% |
| Values | Daily Returns |
All Asset Fund vs. Furyax
Performance |
| Timeline |
| All Asset Fund |
| Furyax |
All Asset and Furyax Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with All Asset and Furyax
The main advantage of trading using opposite All Asset and Furyax positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if All Asset position performs unexpectedly, Furyax 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 Furyax will offset losses from the drop in Furyax's long position.| All Asset vs. Furyax | All Asset vs. Small Pany Growth | All Asset vs. Fuhkbx | All Asset vs. Arrow Managed Futures |
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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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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