Correlation Between Ab Select and Eagle Small
Can any of the company-specific risk be diversified away by investing in both Ab Select and Eagle Small 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 Eagle Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab Select Equity and Eagle Small Cap, you can compare the effects of market volatilities on Ab Select and Eagle Small 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 Eagle Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Select and Eagle Small.
Diversification Opportunities for Ab Select and Eagle Small
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AUUIX and Eagle is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Ab Select Equity and Eagle Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Small Cap 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 Equity are associated (or correlated) with Eagle Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Small Cap has no effect on the direction of Ab Select i.e., Ab Select and Eagle Small go up and down completely randomly.
Pair Corralation between Ab Select and Eagle Small
Assuming the 90 days horizon Ab Select Equity is expected to generate 0.6 times more return on investment than Eagle Small. However, Ab Select Equity is 1.65 times less risky than Eagle Small. It trades about -0.04 of its potential returns per unit of risk. Eagle Small Cap is currently generating about -0.31 per unit of risk. If you would invest 2,249 in Ab Select Equity on December 1, 2024 and sell it today you would lose (14.00) from holding Ab Select Equity or give up 0.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab Select Equity vs. Eagle Small Cap
Performance |
| Timeline |
| Ab Select Equity |
| Eagle Small Cap |
Ab Select and Eagle Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Select and Eagle Small
The main advantage of trading using opposite Ab Select and Eagle Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Select position performs unexpectedly, Eagle Small 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 Eagle Small will offset losses from the drop in Eagle Small's long position.| Ab Select vs. Baillie Gifford Health | Ab Select vs. Putnam Global Health | Ab Select vs. Hartford Healthcare Hls | Ab Select vs. Health Care Ultrasector |
| Eagle Small vs. Real Estate Securities | Eagle Small vs. Global Real Estate | Eagle Small vs. Real Estate Ultrasector | Eagle Small vs. Sa Real Estate |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |