Correlation Between Ab Minnesota and New York
Can any of the company-specific risk be diversified away by investing in both Ab Minnesota and New York 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 Minnesota and New York into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab Minnesota Portfolio and New York Municipal, you can compare the effects of market volatilities on Ab Minnesota and New York 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 Minnesota with a short position of New York. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Minnesota and New York.
Diversification Opportunities for Ab Minnesota and New York
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between AMNCX and New is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Ab Minnesota Portfolio and New York Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New York Municipal and Ab Minnesota 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 Minnesota Portfolio are associated (or correlated) with New York. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New York Municipal has no effect on the direction of Ab Minnesota i.e., Ab Minnesota and New York go up and down completely randomly.
Pair Corralation between Ab Minnesota and New York
Assuming the 90 days horizon Ab Minnesota Portfolio is expected to generate 1.55 times more return on investment than New York. However, Ab Minnesota is 1.55 times more volatile than New York Municipal. It trades about 0.07 of its potential returns per unit of risk. New York Municipal is currently generating about 0.09 per unit of risk. If you would invest 945.00 in Ab Minnesota Portfolio on September 1, 2024 and sell it today you would earn a total of 26.00 from holding Ab Minnesota Portfolio or generate 2.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.47% |
| Values | Daily Returns |
Ab Minnesota Portfolio vs. New York Municipal
Performance |
| Timeline |
| Ab Minnesota Portfolio |
| New York Municipal |
Ab Minnesota and New York Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Minnesota and New York
The main advantage of trading using opposite Ab Minnesota and New York positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Minnesota position performs unexpectedly, New York 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 New York will offset losses from the drop in New York's long position.| Ab Minnesota vs. Ab Global E | Ab Minnesota vs. Ab Global E | Ab Minnesota vs. Ab Global E | Ab Minnesota vs. Ab Virginia Portfolio |
| New York vs. Europac Gold Fund | New York vs. Great West Goldman Sachs | New York vs. Gabelli Gold Fund | New York vs. Short Precious Metals |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |