Correlation Between Ab Bond and Northern Global
Can any of the company-specific risk be diversified away by investing in both Ab Bond and Northern Global 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 Northern Global 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 Northern Global Sustainability, you can compare the effects of market volatilities on Ab Bond and Northern Global 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 Northern Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Bond and Northern Global.
Diversification Opportunities for Ab Bond and Northern Global
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between ABNTX and Northern is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Ab Bond Inflation and Northern Global Sustainability in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northern Global Sust 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 Northern Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Northern Global Sust has no effect on the direction of Ab Bond i.e., Ab Bond and Northern Global go up and down completely randomly.
Pair Corralation between Ab Bond and Northern Global
Assuming the 90 days horizon Ab Bond is expected to generate 6.2 times less return on investment than Northern Global. But when comparing it to its historical volatility, Ab Bond Inflation is 4.09 times less risky than Northern Global. It trades about 0.21 of its potential returns per unit of risk. Northern Global Sustainability is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 2,376 in Northern Global Sustainability on September 3, 2024 and sell it today you would earn a total of 103.00 from holding Northern Global Sustainability or generate 4.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab Bond Inflation vs. Northern Global Sustainability
Performance |
| Timeline |
| Ab Bond Inflation |
| Northern Global Sust |
Ab Bond and Northern Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Bond and Northern Global
The main advantage of trading using opposite Ab Bond and Northern Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Bond position performs unexpectedly, Northern Global 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 Northern Global will offset losses from the drop in Northern Global's long position.| Ab Bond vs. Blackrock High Yield | Ab Bond vs. Pgim High Yield | Ab Bond vs. Goldman Sachs High | Ab Bond vs. Gmo High Yield |
| Northern Global vs. William Blair Growth | Northern Global vs. Ftfa Franklin Templeton Growth | Northern Global vs. Pace Large Growth | Northern Global vs. Eip Growth And |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |