Correlation Between Ab Impact and Brandes Emerging
Can any of the company-specific risk be diversified away by investing in both Ab Impact and Brandes Emerging 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 Brandes Emerging 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 Brandes Emerging Markets, you can compare the effects of market volatilities on Ab Impact and Brandes Emerging 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 Brandes Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Impact and Brandes Emerging.
Diversification Opportunities for Ab Impact and Brandes Emerging
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between ABIMX and Brandes is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Ab Impact Municipal and Brandes Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brandes Emerging Markets 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 Brandes Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brandes Emerging Markets has no effect on the direction of Ab Impact i.e., Ab Impact and Brandes Emerging go up and down completely randomly.
Pair Corralation between Ab Impact and Brandes Emerging
Assuming the 90 days horizon Ab Impact Municipal is expected to generate 0.3 times more return on investment than Brandes Emerging. However, Ab Impact Municipal is 3.37 times less risky than Brandes Emerging. It trades about 0.15 of its potential returns per unit of risk. Brandes Emerging Markets is currently generating about 0.0 per unit of risk. If you would invest 947.00 in Ab Impact Municipal on September 1, 2024 and sell it today you would earn a total of 52.00 from holding Ab Impact Municipal or generate 5.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Ab Impact Municipal vs. Brandes Emerging Markets
Performance |
| Timeline |
| Ab Impact Municipal |
| Brandes Emerging Markets |
Ab Impact and Brandes Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Impact and Brandes Emerging
The main advantage of trading using opposite Ab Impact and Brandes Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Impact position performs unexpectedly, Brandes Emerging 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 Brandes Emerging will offset losses from the drop in Brandes Emerging's long position.| Ab Impact vs. Barings Emerging Markets | Ab Impact vs. Artisan Emerging Markets | Ab Impact vs. Black Oak Emerging | Ab Impact vs. Ashmore Emerging Markets |
| Brandes Emerging vs. Baron Emerging Markets | Brandes Emerging vs. Brandes International Equity | Brandes Emerging vs. Guggenheim Macro Opportunities | Brandes Emerging vs. Aqr Diversified Arbitrage |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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