Correlation Between Ab High and Cref Money
Can any of the company-specific risk be diversified away by investing in both Ab High and Cref Money 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 Cref Money 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 Cref Money Market, you can compare the effects of market volatilities on Ab High and Cref Money 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 Cref Money. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab High and Cref Money.
Diversification Opportunities for Ab High and Cref Money
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AGDZX and Cref is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Ab High Income and Cref Money Market in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cref Money Market 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 Cref Money. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cref Money Market has no effect on the direction of Ab High i.e., Ab High and Cref Money go up and down completely randomly.
Pair Corralation between Ab High and Cref Money
Assuming the 90 days horizon Ab High Income is expected to generate 10.56 times more return on investment than Cref Money. However, Ab High is 10.56 times more volatile than Cref Money Market. It trades about 0.17 of its potential returns per unit of risk. Cref Money Market is currently generating about 1.02 per unit of risk. If you would invest 702.00 in Ab High Income on November 1, 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 Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab High Income vs. Cref Money Market
Performance |
| Timeline |
| Ab High Income |
| Cref Money Market |
Ab High and Cref Money Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab High and Cref Money
The main advantage of trading using opposite Ab High and Cref Money positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab High position performs unexpectedly, Cref Money 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 Cref Money will offset losses from the drop in Cref Money's long position.| Ab High vs. Inverse Government Long | Ab High vs. Aig Government Money | Ab High vs. Voya Government Money | Ab High vs. Federated Government Income |
| Cref Money vs. Artisan High Income | Cref Money vs. Needham Aggressive Growth | Cref Money vs. Msift High Yield | Cref Money 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| 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 | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |