Correlation Between Ab Global and Multi-manager High
Can any of the company-specific risk be diversified away by investing in both Ab Global and Multi-manager High 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 Multi-manager High 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 Multi Manager High Yield, you can compare the effects of market volatilities on Ab Global and Multi-manager High 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 Multi-manager High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Global and Multi-manager High.
Diversification Opportunities for Ab Global and Multi-manager High
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ANAGX and Multi-manager is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Ab Global Bond and Multi Manager High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multi Manager High 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 Multi-manager High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multi Manager High has no effect on the direction of Ab Global i.e., Ab Global and Multi-manager High go up and down completely randomly.
Pair Corralation between Ab Global and Multi-manager High
Assuming the 90 days horizon Ab Global Bond is expected to generate 1.55 times more return on investment than Multi-manager High. However, Ab Global is 1.55 times more volatile than Multi Manager High Yield. It trades about 0.27 of its potential returns per unit of risk. Multi Manager High Yield is currently generating about 0.13 per unit of risk. If you would invest 688.00 in Ab Global Bond on September 2, 2024 and sell it today you would earn a total of 8.00 from holding Ab Global Bond or generate 1.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab Global Bond vs. Multi Manager High Yield
Performance |
| Timeline |
| Ab Global Bond |
| Multi Manager High |
Ab Global and Multi-manager High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Global and Multi-manager High
The main advantage of trading using opposite Ab Global and Multi-manager High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Global position performs unexpectedly, Multi-manager High 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 Multi-manager High will offset losses from the drop in Multi-manager High's long position.| Ab Global vs. Multi Manager High Yield | Ab Global vs. Mesirow Financial High | Ab Global vs. Blackrock High Yield | Ab Global vs. Dunham High Yield |
| Multi-manager High vs. Goldman Sachs Financial | Multi-manager High vs. Angel Oak Financial | Multi-manager High vs. Transamerica Financial Life | Multi-manager High vs. Vanguard Financials Index |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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