Correlation Between AB International and GainClients
Can any of the company-specific risk be diversified away by investing in both AB International and GainClients 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 International and GainClients into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AB International Group and GainClients, you can compare the effects of market volatilities on AB International and GainClients 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 International with a short position of GainClients. Check out your portfolio center. Please also check ongoing floating volatility patterns of AB International and GainClients.
Diversification Opportunities for AB International and GainClients
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between ABQQ and GainClients is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding AB International Group and GainClients in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GainClients and AB International 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 International Group are associated (or correlated) with GainClients. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GainClients has no effect on the direction of AB International i.e., AB International and GainClients go up and down completely randomly.
Pair Corralation between AB International and GainClients
If you would invest 0.04 in AB International Group on August 24, 2024 and sell it today you would earn a total of 0.04 from holding AB International Group or generate 100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
AB International Group vs. GainClients
Performance |
| Timeline |
| AB International |
| GainClients |
AB International and GainClients Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AB International and GainClients
The main advantage of trading using opposite AB International and GainClients positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AB International position performs unexpectedly, GainClients 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 GainClients will offset losses from the drop in GainClients' long position.| AB International vs. Boxlight Corp Class | AB International vs. Siyata Mobile | AB International vs. ClearOne | AB International vs. HUMANA INC |
| GainClients vs. Salesforce | GainClients vs. SAP SE ADR | GainClients vs. ServiceNow | GainClients vs. Intuit Inc |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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