Correlation Between Extended Market and Asg Managed
Can any of the company-specific risk be diversified away by investing in both Extended Market 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 Extended Market and Asg Managed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Extended Market Index and Asg Managed Futures, you can compare the effects of market volatilities on Extended Market 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 Extended Market with a short position of Asg Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Extended Market and Asg Managed.
Diversification Opportunities for Extended Market and Asg Managed
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Extended and Asg is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Extended Market Index 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 Extended Market 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 Extended Market Index 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 Extended Market i.e., Extended Market and Asg Managed go up and down completely randomly.
Pair Corralation between Extended Market and Asg Managed
Assuming the 90 days horizon Extended Market Index is expected to generate 1.57 times more return on investment than Asg Managed. However, Extended Market is 1.57 times more volatile than Asg Managed Futures. It trades about 0.08 of its potential returns per unit of risk. Asg Managed Futures is currently generating about -0.03 per unit of risk. If you would invest 1,921 in Extended Market Index on August 28, 2024 and sell it today you would earn a total of 607.00 from holding Extended Market Index or generate 31.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.72% |
| Values | Daily Returns |
Extended Market Index vs. Asg Managed Futures
Performance |
| Timeline |
| Extended Market Index |
| Asg Managed Futures |
Extended Market and Asg Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Extended Market and Asg Managed
The main advantage of trading using opposite Extended Market and Asg Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Extended Market 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.| Extended Market vs. Income Fund Income | Extended Market vs. Usaa Nasdaq 100 | Extended Market vs. Victory Diversified Stock | Extended Market vs. Intermediate Term Bond 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |