Correlation Between Asg Managed and Abbey Capital

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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 Futures is expected to generate 1.56 times more return on investment than Abbey Capital. However, Asg Managed is 1.56 times more volatile than Abbey Capital Futures. It trades about 0.36 of its potential returns per unit of risk. Abbey Capital Futures is currently generating about 0.38 per unit of risk. If you would invest  941.00  in Asg Managed Futures on December 30, 2023 and sell it today you would earn a total of  36.00  from holding Asg Managed Futures or generate 3.83% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

ASG MANAGED FUTURES  vs.  ABBEY CAPITAL FUTURES

 Performance 
       Timeline  
Asg Managed Futures 

Risk-Adjusted Performance

19 of 100

 
Low
 
High
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in Asg Managed Futures are ranked lower than 19 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Asg Managed may actually be approaching a critical reversion point that can send shares even higher in April 2024.
Abbey Capital Futures 

Risk-Adjusted Performance

23 of 100

 
Low
 
High
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in Abbey Capital Futures are ranked lower than 23 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Abbey Capital may actually be approaching a critical reversion point that can send shares even higher in April 2024.

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.
The idea behind Asg Managed Futures and Abbey Capital Futures pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.

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