Correlation Between Ab Select and Standpoint Multi
Can any of the company-specific risk be diversified away by investing in both Ab Select and Standpoint Multi 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 Standpoint Multi 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 Standpoint Multi Asset, you can compare the effects of market volatilities on Ab Select and Standpoint Multi 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 Standpoint Multi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Select and Standpoint Multi.
Diversification Opportunities for Ab Select and Standpoint Multi
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ASLAX and Standpoint is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Ab Select Longshort and Standpoint Multi Asset in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Standpoint Multi Asset 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 Standpoint Multi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Standpoint Multi Asset has no effect on the direction of Ab Select i.e., Ab Select and Standpoint Multi go up and down completely randomly.
Pair Corralation between Ab Select and Standpoint Multi
Assuming the 90 days horizon Ab Select Longshort is expected to generate 0.66 times more return on investment than Standpoint Multi. However, Ab Select Longshort is 1.52 times less risky than Standpoint Multi. It trades about 0.15 of its potential returns per unit of risk. Standpoint Multi Asset is currently generating about 0.06 per unit of risk. If you would invest 1,252 in Ab Select Longshort on August 30, 2024 and sell it today you would earn a total of 310.00 from holding Ab Select Longshort or generate 24.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab Select Longshort vs. Standpoint Multi Asset
Performance |
| Timeline |
| Ab Select Longshort |
| Standpoint Multi Asset |
Ab Select and Standpoint Multi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Select and Standpoint Multi
The main advantage of trading using opposite Ab Select and Standpoint Multi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Select position performs unexpectedly, Standpoint Multi 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 Standpoint Multi will offset losses from the drop in Standpoint Multi's long position.| Ab Select vs. Artisan High Income | Ab Select vs. Oklahoma Municipal Fund | Ab Select vs. Multisector Bond Sma | Ab Select vs. Mirova Global Green |
| Standpoint Multi vs. Neuberger Berman Long | Standpoint Multi vs. Neuberger Berman Long | Standpoint Multi vs. Pimco Rae Worldwide |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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