Correlation Between 361 Global and Ab Global
Can any of the company-specific risk be diversified away by investing in both 361 Global and Ab 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 361 Global and Ab Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 361 Global Longshort and Ab Global Real, you can compare the effects of market volatilities on 361 Global and Ab 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 361 Global with a short position of Ab Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of 361 Global and Ab Global.
Diversification Opportunities for 361 Global and Ab Global
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between 361 and AEEIX is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding 361 Global Longshort and Ab Global Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Global Real and 361 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 361 Global Longshort are associated (or correlated) with Ab Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Global Real has no effect on the direction of 361 Global i.e., 361 Global and Ab Global go up and down completely randomly.
Pair Corralation between 361 Global and Ab Global
Assuming the 90 days horizon 361 Global Longshort is expected to generate 1.03 times more return on investment than Ab Global. However, 361 Global is 1.03 times more volatile than Ab Global Real. It trades about -0.07 of its potential returns per unit of risk. Ab Global Real is currently generating about -0.1 per unit of risk. If you would invest 1,216 in 361 Global Longshort on January 7, 2025 and sell it today you would lose (119.00) from holding 361 Global Longshort or give up 9.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.32% |
| Values | Daily Returns |
361 Global Longshort vs. Ab Global Real
Performance |
| Timeline |
| 361 Global Longshort |
| Ab Global Real |
361 Global and Ab Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 361 Global and Ab Global
The main advantage of trading using opposite 361 Global and Ab Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 361 Global position performs unexpectedly, Ab 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 Ab Global will offset losses from the drop in Ab Global's long position.| 361 Global vs. Guidemark Large Cap | 361 Global vs. Lord Abbett Affiliated | 361 Global vs. American Mutual Fund | 361 Global vs. Large Cap Fund |
| Ab Global vs. Ab Global E | Ab Global vs. Ab Global E | Ab Global vs. Ab Global E | Ab Global vs. Ab Minnesota Portfolio |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |