Correlation Between Ab Bond and Simt Multi-asset
Can any of the company-specific risk be diversified away by investing in both Ab Bond and Simt Multi-asset 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 Bond and Simt Multi-asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab Bond Inflation and Simt Multi Asset Inflation, you can compare the effects of market volatilities on Ab Bond and Simt Multi-asset 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 Bond with a short position of Simt Multi-asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Bond and Simt Multi-asset.
Diversification Opportunities for Ab Bond and Simt Multi-asset
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ABNOX and Simt is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Ab Bond Inflation and Simt Multi Asset Inflation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simt Multi Asset and Ab Bond 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 Bond Inflation are associated (or correlated) with Simt Multi-asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simt Multi Asset has no effect on the direction of Ab Bond i.e., Ab Bond and Simt Multi-asset go up and down completely randomly.
Pair Corralation between Ab Bond and Simt Multi-asset
Assuming the 90 days horizon Ab Bond is expected to generate 1.69 times less return on investment than Simt Multi-asset. But when comparing it to its historical volatility, Ab Bond Inflation is 1.17 times less risky than Simt Multi-asset. It trades about 0.29 of its potential returns per unit of risk. Simt Multi Asset Inflation is currently generating about 0.42 of returns per unit of risk over similar time horizon. If you would invest 770.00 in Simt Multi Asset Inflation on November 3, 2024 and sell it today you would earn a total of 13.00 from holding Simt Multi Asset Inflation or generate 1.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab Bond Inflation vs. Simt Multi Asset Inflation
Performance |
| Timeline |
| Ab Bond Inflation |
| Simt Multi Asset |
Ab Bond and Simt Multi-asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Bond and Simt Multi-asset
The main advantage of trading using opposite Ab Bond and Simt Multi-asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Bond position performs unexpectedly, Simt Multi-asset 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 Simt Multi-asset will offset losses from the drop in Simt Multi-asset's long position.| Ab Bond vs. Growth Strategy Fund | Ab Bond vs. Investec Emerging Markets | Ab Bond vs. Nasdaq 100 2x Strategy | Ab Bond vs. Balanced Strategy Fund |
| Simt Multi-asset vs. Great West Goldman Sachs | Simt Multi-asset vs. Deutsche Gold Precious | Simt Multi-asset vs. Great West Goldman Sachs | Simt Multi-asset vs. International Investors Gold |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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