Correlation Between Ab High and Barings Us
Can any of the company-specific risk be diversified away by investing in both Ab High and Barings Us 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 Barings Us 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 Barings High Yield, you can compare the effects of market volatilities on Ab High and Barings Us 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 Barings Us. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab High and Barings Us.
Diversification Opportunities for Ab High and Barings Us
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between AGDIX and Barings is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Ab High Income and Barings High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barings High Yield 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 Barings Us. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barings High Yield has no effect on the direction of Ab High i.e., Ab High and Barings Us go up and down completely randomly.
Pair Corralation between Ab High and Barings Us
Assuming the 90 days horizon Ab High Income is expected to generate 0.93 times more return on investment than Barings Us. However, Ab High Income is 1.08 times less risky than Barings Us. It trades about -0.34 of its potential returns per unit of risk. Barings High Yield is currently generating about -0.35 per unit of risk. If you would invest 707.00 in Ab High Income on October 15, 2024 and sell it today you would lose (7.00) from holding Ab High Income or give up 0.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab High Income vs. Barings High Yield
Performance |
| Timeline |
| Ab High Income |
| Barings High Yield |
Ab High and Barings Us Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab High and Barings Us
The main advantage of trading using opposite Ab High and Barings Us positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab High position performs unexpectedly, Barings Us 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 Barings Us will offset losses from the drop in Barings Us' 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 |
| Barings Us vs. Needham Aggressive Growth | Barings Us vs. Catalystsmh High Income | Barings Us vs. Virtus High Yield | Barings Us vs. Ab High 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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