Correlation Between Ab Impact and High Yield
Can any of the company-specific risk be diversified away by investing in both Ab Impact and 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 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 High Yield Portfolio, you can compare the effects of market volatilities on Ab Impact and 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 High Yield. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Impact and High Yield.
Diversification Opportunities for Ab Impact and High Yield
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between ABIMX and High is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Ab Impact Municipal and High Yield Portfolio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on High Yield 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 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 High Yield Portfolio has no effect on the direction of Ab Impact i.e., Ab Impact and High Yield go up and down completely randomly.
Pair Corralation between Ab Impact and High Yield
Assuming the 90 days horizon Ab Impact is expected to generate 1.17 times less return on investment than High Yield. In addition to that, Ab Impact is 1.55 times more volatile than High Yield Portfolio. It trades about 0.14 of its total potential returns per unit of risk. High Yield Portfolio is currently generating about 0.25 per unit of volatility. If you would invest 759.00 in High Yield Portfolio on September 14, 2024 and sell it today you would earn a total of 98.00 from holding High Yield Portfolio or generate 12.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab Impact Municipal vs. High Yield Portfolio
Performance |
| Timeline |
| Ab Impact Municipal |
| High Yield Portfolio |
Ab Impact and High Yield Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Impact and High Yield
The main advantage of trading using opposite Ab Impact and High Yield positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Impact position performs unexpectedly, 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 High Yield will offset losses from the drop in High Yield'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 |
| High Yield vs. California High Yield Municipal | High Yield vs. Gamco Global Telecommunications | High Yield vs. Ab Impact Municipal | High Yield vs. Franklin High Yield |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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