Correlation Between Ab Global and Kopernik Global
Can any of the company-specific risk be diversified away by investing in both Ab Global and Kopernik Global 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 Kopernik Global 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 Kopernik Global All Cap, you can compare the effects of market volatilities on Ab Global and Kopernik Global 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 Kopernik Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Global and Kopernik Global.
Diversification Opportunities for Ab Global and Kopernik Global
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between ANAGX and Kopernik is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Ab Global Bond and Kopernik Global All Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kopernik Global All 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 Kopernik Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kopernik Global All has no effect on the direction of Ab Global i.e., Ab Global and Kopernik Global go up and down completely randomly.
Pair Corralation between Ab Global and Kopernik Global
Assuming the 90 days horizon Ab Global Bond is expected to generate 0.36 times more return on investment than Kopernik Global. However, Ab Global Bond is 2.78 times less risky than Kopernik Global. It trades about 0.1 of its potential returns per unit of risk. Kopernik Global All Cap is currently generating about 0.02 per unit of risk. If you would invest 645.00 in Ab Global Bond on September 14, 2024 and sell it today you would earn a total of 47.00 from holding Ab Global Bond or generate 7.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.63% |
| Values | Daily Returns |
Ab Global Bond vs. Kopernik Global All Cap
Performance |
| Timeline |
| Ab Global Bond |
| Kopernik Global All |
Ab Global and Kopernik Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Global and Kopernik Global
The main advantage of trading using opposite Ab Global and Kopernik Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Global position performs unexpectedly, Kopernik Global 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 Kopernik Global will offset losses from the drop in Kopernik Global'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 |
| Kopernik Global vs. Legg Mason Global | Kopernik Global vs. Franklin Mutual Global | Kopernik Global vs. Ab Global Bond | Kopernik Global vs. Siit Global Managed |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |