Correlation Between Ab Global and Catalyst/millburn
Can any of the company-specific risk be diversified away by investing in both Ab Global and Catalyst/millburn 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 Global and Catalyst/millburn into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab Global Real and Catalystmillburn Hedge Strategy, you can compare the effects of market volatilities on Ab Global and Catalyst/millburn 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 Global with a short position of Catalyst/millburn. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Global and Catalyst/millburn.
Diversification Opportunities for Ab Global and Catalyst/millburn
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between AEEIX and Catalyst/millburn is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Ab Global Real and Catalystmillburn Hedge Strateg in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalystmillburn Hedge and Ab Global 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 Global Real are associated (or correlated) with Catalyst/millburn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalystmillburn Hedge has no effect on the direction of Ab Global i.e., Ab Global and Catalyst/millburn go up and down completely randomly.
Pair Corralation between Ab Global and Catalyst/millburn
Assuming the 90 days horizon Ab Global Real is expected to generate 1.18 times more return on investment than Catalyst/millburn. However, Ab Global is 1.18 times more volatile than Catalystmillburn Hedge Strategy. It trades about 0.13 of its potential returns per unit of risk. Catalystmillburn Hedge Strategy is currently generating about 0.03 per unit of risk. If you would invest 1,355 in Ab Global Real on September 5, 2024 and sell it today you would earn a total of 177.00 from holding Ab Global Real or generate 13.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab Global Real vs. Catalystmillburn Hedge Strateg
Performance |
| Timeline |
| Ab Global Real |
| Catalystmillburn Hedge |
Ab Global and Catalyst/millburn Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Global and Catalyst/millburn
The main advantage of trading using opposite Ab Global and Catalyst/millburn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Global position performs unexpectedly, Catalyst/millburn 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 Catalyst/millburn will offset losses from the drop in Catalyst/millburn's long position.| Ab Global vs. Ab Global E | Ab Global vs. Ab Global E | Ab Global vs. Ab Global E | Ab Global vs. Ab Minnesota Portfolio |
| Catalyst/millburn vs. Volumetric Fund Volumetric | Catalyst/millburn vs. Federated Mdt Large | Catalyst/millburn vs. Nationwide Global Equity | Catalyst/millburn vs. Rbb Fund |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |