Correlation Between Ab Impact and California High-yield
Can any of the company-specific risk be diversified away by investing in both Ab Impact and California High-yield 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 California High-yield 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 California High Yield Municipal, you can compare the effects of market volatilities on Ab Impact and California High-yield 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 California High-yield. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Impact and California High-yield.
Diversification Opportunities for Ab Impact and California High-yield
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between ABIMX and California is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Ab Impact Municipal and California High Yield Municipa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on California High Yield 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 California High-yield. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of California High Yield has no effect on the direction of Ab Impact i.e., Ab Impact and California High-yield go up and down completely randomly.
Pair Corralation between Ab Impact and California High-yield
Assuming the 90 days horizon Ab Impact is expected to generate 1.09 times less return on investment than California High-yield. In addition to that, Ab Impact is 1.11 times more volatile than California High Yield Municipal. It trades about 0.06 of its total potential returns per unit of risk. California High Yield Municipal is currently generating about 0.07 per unit of volatility. If you would invest 978.00 in California High Yield Municipal on August 28, 2024 and sell it today you would earn a total of 12.00 from holding California High Yield Municipal or generate 1.23% 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. California High Yield Municipa
Performance |
| Timeline |
| Ab Impact Municipal |
| California High Yield |
Ab Impact and California High-yield Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Impact and California High-yield
The main advantage of trading using opposite Ab Impact and California High-yield positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Impact position performs unexpectedly, California High-yield 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 California High-yield will offset losses from the drop in California High-yield's long position.| Ab Impact vs. Transamerica Emerging Markets | Ab Impact vs. Pnc Emerging Markets | Ab Impact vs. Rbc Bluebay Emerging | Ab Impact vs. Ashmore Emerging Markets |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Stocks Directory Find actively traded stocks across global markets |