Correlation Between Ab High and Oberweis Emerging
Can any of the company-specific risk be diversified away by investing in both Ab High and Oberweis Emerging 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 Oberweis Emerging 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 Oberweis Emerging Markets, you can compare the effects of market volatilities on Ab High and Oberweis Emerging 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 Oberweis Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab High and Oberweis Emerging.
Diversification Opportunities for Ab High and Oberweis Emerging
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AGDAX and Oberweis is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Ab High Income and Oberweis Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oberweis Emerging Markets 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 Oberweis Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oberweis Emerging Markets has no effect on the direction of Ab High i.e., Ab High and Oberweis Emerging go up and down completely randomly.
Pair Corralation between Ab High and Oberweis Emerging
Assuming the 90 days horizon Ab High Income is expected to generate 5.55 times more return on investment than Oberweis Emerging. However, Ab High is 5.55 times more volatile than Oberweis Emerging Markets. It trades about 0.18 of its potential returns per unit of risk. Oberweis Emerging Markets is currently generating about -0.28 per unit of risk. If you would invest 701.00 in Ab High Income on September 4, 2024 and sell it today you would earn a total of 4.00 from holding Ab High Income or generate 0.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 65.0% |
| Values | Daily Returns |
Ab High Income vs. Oberweis Emerging Markets
Performance |
| Timeline |
| Ab High Income |
| Oberweis Emerging Markets |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Ab High and Oberweis Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab High and Oberweis Emerging
The main advantage of trading using opposite Ab High and Oberweis Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab High position performs unexpectedly, Oberweis Emerging 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 Oberweis Emerging will offset losses from the drop in Oberweis Emerging's long position.| Ab High vs. Pace Smallmedium Value | Ab High vs. Heartland Value Plus | Ab High vs. Amg River Road | Ab High vs. Fpa Queens Road |
| Oberweis Emerging vs. Ppm High Yield | Oberweis Emerging vs. Pgim High Yield | Oberweis Emerging vs. Blackrock High Yield | Oberweis Emerging vs. American Century High |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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