Correlation Between Smallcap Fund and Asg Managed
Can any of the company-specific risk be diversified away by investing in both Smallcap Fund 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 Smallcap Fund and Asg Managed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Smallcap Fund Fka and Asg Managed Futures, you can compare the effects of market volatilities on Smallcap Fund 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 Smallcap Fund with a short position of Asg Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Smallcap Fund and Asg Managed.
Diversification Opportunities for Smallcap Fund and Asg Managed
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Smallcap and Asg is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Smallcap Fund Fka 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 Smallcap Fund 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 Smallcap Fund Fka 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 Smallcap Fund i.e., Smallcap Fund and Asg Managed go up and down completely randomly.
Pair Corralation between Smallcap Fund and Asg Managed
Assuming the 90 days horizon Smallcap Fund Fka is expected to generate 1.6 times more return on investment than Asg Managed. However, Smallcap Fund is 1.6 times more volatile than Asg Managed Futures. It trades about 0.14 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 2,577 in Smallcap Fund Fka on November 5, 2024 and sell it today you would earn a total of 71.00 from holding Smallcap Fund Fka or generate 2.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Smallcap Fund Fka vs. Asg Managed Futures
Performance |
| Timeline |
| Smallcap Fund Fka |
| Asg Managed Futures |
Smallcap Fund and Asg Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Smallcap Fund and Asg Managed
The main advantage of trading using opposite Smallcap Fund and Asg Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Smallcap Fund 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.| Smallcap Fund vs. Virtus Convertible | Smallcap Fund vs. Advent Claymore Convertible | Smallcap Fund vs. Absolute Convertible Arbitrage | Smallcap Fund vs. Rationalpier 88 Convertible |
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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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