Correlation Between Ab Select and Allianzgi Nfj
Can any of the company-specific risk be diversified away by investing in both Ab Select and Allianzgi Nfj 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 Allianzgi Nfj 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 Allianzgi Nfj Small Cap, you can compare the effects of market volatilities on Ab Select and Allianzgi Nfj 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 Allianzgi Nfj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Select and Allianzgi Nfj.
Diversification Opportunities for Ab Select and Allianzgi Nfj
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between ASCLX and Allianzgi is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Ab Select Longshort and Allianzgi Nfj Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allianzgi Nfj Small 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 Allianzgi Nfj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allianzgi Nfj Small has no effect on the direction of Ab Select i.e., Ab Select and Allianzgi Nfj go up and down completely randomly.
Pair Corralation between Ab Select and Allianzgi Nfj
Assuming the 90 days horizon Ab Select Longshort is expected to generate 0.36 times more return on investment than Allianzgi Nfj. However, Ab Select Longshort is 2.78 times less risky than Allianzgi Nfj. It trades about 0.14 of its potential returns per unit of risk. Allianzgi Nfj Small Cap is currently generating about 0.04 per unit of risk. If you would invest 1,108 in Ab Select Longshort on August 31, 2024 and sell it today you would earn a total of 300.00 from holding Ab Select Longshort or generate 27.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.73% |
| Values | Daily Returns |
Ab Select Longshort vs. Allianzgi Nfj Small Cap
Performance |
| Timeline |
| Ab Select Longshort |
| Allianzgi Nfj Small |
Ab Select and Allianzgi Nfj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Select and Allianzgi Nfj
The main advantage of trading using opposite Ab Select and Allianzgi Nfj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Select position performs unexpectedly, Allianzgi Nfj 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 Allianzgi Nfj will offset losses from the drop in Allianzgi Nfj's long position.| Ab Select vs. Small Cap Stock | Ab Select vs. Pgim Jennison Diversified | Ab Select vs. Jhancock Diversified Macro | Ab Select vs. Oppenheimer International Diversified |
| Allianzgi Nfj vs. Goldman Sachs Short Term | Allianzgi Nfj vs. Ab Select Longshort | Allianzgi Nfj vs. Ultra Short Fixed Income | Allianzgi Nfj vs. Astor Longshort Fund |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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