Correlation Between Global Small and Asg Managed

Can any of the company-specific risk be diversified away by investing in both Global Small 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 Global Small and Asg Managed into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Global Small Cap and Asg Managed Futures, you can compare the effects of market volatilities on Global Small 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 Global Small with a short position of Asg Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Small and Asg Managed.

Diversification Opportunities for Global Small and Asg Managed

-0.14

Correlation Coefficient

Global Small  Asg Managed

Good diversification

The 3 months correlation between Global and Asg is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Global Small Cap 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 Global Small 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 Global Small Cap 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 Global Small i.e., Global Small and Asg Managed go up and down completely randomly.

Pair Corralation between Global Small and Asg Managed

Assuming the 90 days horizon Global Small Cap is expected to generate 1.75 times more return on investment than Asg Managed. However, Global Small is 1.75 times more volatile than Asg Managed Futures. It trades about 0.36 of its potential returns per unit of risk. Asg Managed Futures is currently generating about 0.2 per unit of risk. If you would invest  1,859  in Global Small Cap on September 5, 2024 and sell it today you would earn a total of  148.00  from holding Global Small Cap or generate 7.96% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Global Small Cap  vs.  Asg Managed Futures

Global Small Cap

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Global Small Cap are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Global Small may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Asg Managed Futures

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Asg Managed Futures has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Asg Managed is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Global Small and Asg Managed

The main advantage of trading using opposite Global Small and Asg Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Small 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.

The idea behind Global Small Cap and Asg Managed 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.

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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.