Correlation Between Ab High and Jacob Funds
Can any of the company-specific risk be diversified away by investing in both Ab High and Jacob Funds 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 High and Jacob Funds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab High Income and Jacob Funds , you can compare the effects of market volatilities on Ab High and Jacob Funds 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 High with a short position of Jacob Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab High and Jacob Funds.
Diversification Opportunities for Ab High and Jacob Funds
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AGDAX and Jacob is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Ab High Income and Jacob Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jacob Funds and Ab High 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 High Income are associated (or correlated) with Jacob Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jacob Funds has no effect on the direction of Ab High i.e., Ab High and Jacob Funds go up and down completely randomly.
Pair Corralation between Ab High and Jacob Funds
If you would invest 668.00 in Ab High Income on September 5, 2024 and sell it today you would earn a total of 38.00 from holding Ab High Income or generate 5.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 0.81% |
| Values | Daily Returns |
Ab High Income vs. Jacob Funds
Performance |
| Timeline |
| Ab High Income |
| Jacob Funds |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Ab High and Jacob Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab High and Jacob Funds
The main advantage of trading using opposite Ab High and Jacob Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab High position performs unexpectedly, Jacob Funds 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 Jacob Funds will offset losses from the drop in Jacob Funds' long position.| Ab High vs. Ab Global E | Ab High vs. Ab Global E | Ab High vs. Ab Global E | Ab High vs. Ab Minnesota Portfolio |
| Jacob Funds vs. Goldman Sachs High | Jacob Funds vs. Ab Global Risk | Jacob Funds vs. Ab High Income | Jacob Funds vs. T Rowe Price |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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