Correlation Between Ab Impact and Ab Pennsylvania
Can any of the company-specific risk be diversified away by investing in both Ab Impact and Ab Pennsylvania 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 Ab Impact and Ab Pennsylvania into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab Impact Municipal and Ab Pennsylvania Portfolio, you can compare the effects of market volatilities on Ab Impact and Ab Pennsylvania 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 Ab Impact with a short position of Ab Pennsylvania. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Impact and Ab Pennsylvania.
Diversification Opportunities for Ab Impact and Ab Pennsylvania
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between ABIMX and APACX is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Ab Impact Municipal and Ab Pennsylvania Portfolio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Pennsylvania Portfolio and Ab Impact 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 Ab Impact Municipal are associated (or correlated) with Ab Pennsylvania. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Pennsylvania Portfolio has no effect on the direction of Ab Impact i.e., Ab Impact and Ab Pennsylvania go up and down completely randomly.
Pair Corralation between Ab Impact and Ab Pennsylvania
Assuming the 90 days horizon Ab Impact Municipal is expected to generate 1.42 times more return on investment than Ab Pennsylvania. However, Ab Impact is 1.42 times more volatile than Ab Pennsylvania Portfolio. It trades about 0.08 of its potential returns per unit of risk. Ab Pennsylvania Portfolio is currently generating about 0.09 per unit of risk. If you would invest 945.00 in Ab Impact Municipal on September 14, 2024 and sell it today you would earn a total of 48.00 from holding Ab Impact Municipal or generate 5.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab Impact Municipal vs. Ab Pennsylvania Portfolio
Performance |
| Timeline |
| Ab Impact Municipal |
| Ab Pennsylvania Portfolio |
Ab Impact and Ab Pennsylvania Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Impact and Ab Pennsylvania
The main advantage of trading using opposite Ab Impact and Ab Pennsylvania positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Impact position performs unexpectedly, Ab Pennsylvania 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 Ab Pennsylvania will offset losses from the drop in Ab Pennsylvania's long position.| Ab Impact vs. Large Cap Growth Profund | Ab Impact vs. Pace Large Value | Ab Impact vs. Virtus Nfj Large Cap | Ab Impact vs. Aqr Large Cap |
| Ab Pennsylvania vs. Davis Government Bond | Ab Pennsylvania vs. Wesmark Government Bond | Ab Pennsylvania vs. Short Term Government Fund | Ab Pennsylvania vs. Dunham Porategovernment Bond |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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