Correlation Between Ab Government and First Investors
Can any of the company-specific risk be diversified away by investing in both Ab Government and First Investors 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 Government and First Investors into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab Government Exchange and First Investors Select, you can compare the effects of market volatilities on Ab Government and First Investors 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 Government with a short position of First Investors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Government and First Investors.
Diversification Opportunities for Ab Government and First Investors
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AEYXX and First is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ab Government Exchange and First Investors Select in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Investors Select and Ab Government 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 Government Exchange are associated (or correlated) with First Investors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Investors Select has no effect on the direction of Ab Government i.e., Ab Government and First Investors go up and down completely randomly.
Pair Corralation between Ab Government and First Investors
If you would invest 1,221 in First Investors Select on September 13, 2024 and sell it today you would earn a total of 32.00 from holding First Investors Select or generate 2.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab Government Exchange vs. First Investors Select
Performance |
| Timeline |
| Ab Government Exchange |
| First Investors Select |
Ab Government and First Investors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Government and First Investors
The main advantage of trading using opposite Ab Government and First Investors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Government position performs unexpectedly, First Investors 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 First Investors will offset losses from the drop in First Investors' long position.| Ab Government vs. Invesco Technology Fund | Ab Government vs. Mfs Technology Fund | Ab Government vs. Hennessy Technology Fund | Ab Government vs. Goldman Sachs Technology |
| First Investors vs. Optimum Small Mid Cap | First Investors vs. Optimum Small Mid Cap | First Investors vs. Ivy Apollo Multi Asset | First Investors vs. Optimum Fixed Income |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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