Correlation Between Ab Global and Brandes Emerging
Can any of the company-specific risk be diversified away by investing in both Ab Global and Brandes 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 Global and Brandes Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab Global Bond and Brandes Emerging Markets, you can compare the effects of market volatilities on Ab Global and Brandes 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 Global with a short position of Brandes Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Global and Brandes Emerging.
Diversification Opportunities for Ab Global and Brandes Emerging
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ANAGX and Brandes is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ab Global Bond and Brandes Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brandes Emerging Markets and Ab Global 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 Global Bond are associated (or correlated) with Brandes Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brandes Emerging Markets has no effect on the direction of Ab Global i.e., Ab Global and Brandes Emerging go up and down completely randomly.
Pair Corralation between Ab Global and Brandes Emerging
Assuming the 90 days horizon Ab Global is expected to generate 3.02 times less return on investment than Brandes Emerging. But when comparing it to its historical volatility, Ab Global Bond is 3.58 times less risky than Brandes Emerging. It trades about 0.06 of its potential returns per unit of risk. Brandes Emerging Markets is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 801.00 in Brandes Emerging Markets on September 14, 2024 and sell it today you would earn a total of 87.00 from holding Brandes Emerging Markets or generate 10.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab Global Bond vs. Brandes Emerging Markets
Performance |
| Timeline |
| Ab Global Bond |
| Brandes Emerging Markets |
Ab Global and Brandes Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Global and Brandes Emerging
The main advantage of trading using opposite Ab Global and Brandes Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Global position performs unexpectedly, Brandes 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 Brandes Emerging will offset losses from the drop in Brandes Emerging's long position.| Ab Global vs. James Balanced Golden | Ab Global vs. Gabelli Gold Fund | Ab Global vs. Fidelity Advisor Gold | Ab Global vs. International Investors Gold |
| Brandes Emerging vs. Brandes Small Cap | Brandes Emerging vs. Brandes Small Cap | Brandes Emerging vs. Brandes Small Cap | Brandes Emerging vs. Brandes E Plus |
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 CEOs Directory module to screen CEOs from public companies around the world.
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