Correlation Between Ab Global and Blue Current
Can any of the company-specific risk be diversified away by investing in both Ab Global and Blue Current 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 Blue Current 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 Blue Current Global, you can compare the effects of market volatilities on Ab Global and Blue Current 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 Blue Current. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Global and Blue Current.
Diversification Opportunities for Ab Global and Blue Current
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between ANAZX and Blue is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Ab Global Bond and Blue Current Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue Current Global 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 Blue Current. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue Current Global has no effect on the direction of Ab Global i.e., Ab Global and Blue Current go up and down completely randomly.
Pair Corralation between Ab Global and Blue Current
Assuming the 90 days horizon Ab Global is expected to generate 3.65 times less return on investment than Blue Current. But when comparing it to its historical volatility, Ab Global Bond is 2.13 times less risky than Blue Current. It trades about 0.06 of its potential returns per unit of risk. Blue Current Global is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,236 in Blue Current Global on September 1, 2024 and sell it today you would earn a total of 393.00 from holding Blue Current Global or generate 31.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab Global Bond vs. Blue Current Global
Performance |
| Timeline |
| Ab Global Bond |
| Blue Current Global |
Ab Global and Blue Current Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Global and Blue Current
The main advantage of trading using opposite Ab Global and Blue Current positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Global position performs unexpectedly, Blue Current 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 Blue Current will offset losses from the drop in Blue Current's long position.| Ab Global vs. Dodge Cox Stock | Ab Global vs. Fidelity Series 1000 | Ab Global vs. Qs Large Cap | Ab Global vs. Aqr Large Cap |
| Blue Current vs. Investec Emerging Markets | Blue Current vs. Origin Emerging Markets | Blue Current vs. Eagle Mlp Strategy | Blue Current vs. Pace International Emerging |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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