Correlation Between Asg Managed and Abbey Capital
Can any of the company-specific risk be diversified away by investing in both Asg Managed and Abbey Capital 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 Managed and Abbey Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asg Managed Futures and Abbey Capital Futures, you can compare the effects of market volatilities on Asg Managed and Abbey Capital 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 Managed with a short position of Abbey Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asg Managed and Abbey Capital.
Diversification Opportunities for Asg Managed and Abbey Capital
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Asg and Abbey is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Asg Managed Futures and Abbey Capital Futures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Abbey Capital Futures and Asg Managed 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 Managed Futures are associated (or correlated) with Abbey Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Abbey Capital Futures has no effect on the direction of Asg Managed i.e., Asg Managed and Abbey Capital go up and down completely randomly.
Pair Corralation between Asg Managed and Abbey Capital
Assuming the 90 days horizon Asg Managed is expected to generate 1.99 times less return on investment than Abbey Capital. In addition to that, Asg Managed is 1.78 times more volatile than Abbey Capital Futures. It trades about 0.01 of its total potential returns per unit of risk. Abbey Capital Futures is currently generating about 0.03 per unit of volatility. If you would invest 1,123 in Abbey Capital Futures on January 24, 2024 and sell it today you would earn a total of 69.00 from holding Abbey Capital Futures or generate 6.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asg Managed Futures vs. Abbey Capital Futures
Performance |
| Timeline |
| Asg Managed Futures |
| Abbey Capital Futures |
Asg Managed and Abbey Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asg Managed and Abbey Capital
The main advantage of trading using opposite Asg Managed and Abbey Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asg Managed position performs unexpectedly, Abbey Capital 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 Abbey Capital will offset losses from the drop in Abbey Capital's long position.| Asg Managed vs. Aqr Managed Futures | Asg Managed vs. Pimco Trends Managed | Asg Managed vs. Eaton Vance Global | Asg Managed vs. Aqr Managed Futures |
| Abbey Capital vs. Abbey Capital Multi | Abbey Capital vs. Abbey Capital Multi | Abbey Capital vs. Abbey Capital Multi |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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