Correlation Between Ab Select and Nebraska Municipal
Can any of the company-specific risk be diversified away by investing in both Ab Select and Nebraska Municipal 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 Select and Nebraska Municipal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab Select Longshort and Nebraska Municipal Fund, you can compare the effects of market volatilities on Ab Select and Nebraska Municipal 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 Select with a short position of Nebraska Municipal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Select and Nebraska Municipal.
Diversification Opportunities for Ab Select and Nebraska Municipal
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ASCLX and NEBRASKA is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Ab Select Longshort and Nebraska Municipal Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nebraska Municipal and Ab Select 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 Select Longshort are associated (or correlated) with Nebraska Municipal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nebraska Municipal has no effect on the direction of Ab Select i.e., Ab Select and Nebraska Municipal go up and down completely randomly.
Pair Corralation between Ab Select and Nebraska Municipal
Assuming the 90 days horizon Ab Select Longshort is expected to generate 1.57 times more return on investment than Nebraska Municipal. However, Ab Select is 1.57 times more volatile than Nebraska Municipal Fund. It trades about 0.2 of its potential returns per unit of risk. Nebraska Municipal Fund is currently generating about 0.18 per unit of risk. If you would invest 1,369 in Ab Select Longshort on August 29, 2024 and sell it today you would earn a total of 38.00 from holding Ab Select Longshort or generate 2.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab Select Longshort vs. Nebraska Municipal Fund
Performance |
| Timeline |
| Ab Select Longshort |
| Nebraska Municipal |
Ab Select and Nebraska Municipal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Select and Nebraska Municipal
The main advantage of trading using opposite Ab Select and Nebraska Municipal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Select position performs unexpectedly, Nebraska Municipal 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 Nebraska Municipal will offset losses from the drop in Nebraska Municipal's long position.| Ab Select vs. Neuberger Berman Long | Ab Select vs. Neuberger Berman Long | Ab Select vs. Pimco Rae Worldwide |
| Nebraska Municipal vs. Colorado Bondshares A | Nebraska Municipal vs. Virginia Bond Fund | Nebraska Municipal vs. HUMANA INC | Nebraska Municipal vs. Aquagold International |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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