Correlation Between Ab Bond and Federated High
Can any of the company-specific risk be diversified away by investing in both Ab Bond and Federated High 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 Federated High 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 Federated High Income, you can compare the effects of market volatilities on Ab Bond and Federated High 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 Federated High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Bond and Federated High.
Diversification Opportunities for Ab Bond and Federated High
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ABNYX and Federated is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Ab Bond Inflation and Federated High Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated High Income 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 Federated High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated High Income has no effect on the direction of Ab Bond i.e., Ab Bond and Federated High go up and down completely randomly.
Pair Corralation between Ab Bond and Federated High
If you would invest 1,038 in Ab Bond Inflation on September 14, 2024 and sell it today you would earn a total of 4.00 from holding Ab Bond Inflation or generate 0.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Ab Bond Inflation vs. Federated High Income
Performance |
| Timeline |
| Ab Bond Inflation |
| Federated High Income |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Ab Bond and Federated High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Bond and Federated High
The main advantage of trading using opposite Ab Bond and Federated High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Bond position performs unexpectedly, Federated High 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 Federated High will offset losses from the drop in Federated High's long position.| Ab Bond vs. L Abbett Fundamental | Ab Bond vs. Rbb Fund | Ab Bond vs. Auer Growth Fund | Ab Bond vs. Ab Small Cap |
| Federated High vs. Ab Bond Inflation | Federated High vs. Arrow Managed Futures | Federated High vs. Ab Bond Inflation | Federated High vs. Atac Inflation Rotation |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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