Correlation Between Ab Global and Oberweis Small-cap
Can any of the company-specific risk be diversified away by investing in both Ab Global and Oberweis Small-cap 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 Oberweis Small-cap into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab Global Risk and Oberweis Small Cap Opportunities, you can compare the effects of market volatilities on Ab Global and Oberweis Small-cap 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 Oberweis Small-cap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Global and Oberweis Small-cap.
Diversification Opportunities for Ab Global and Oberweis Small-cap
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CABIX and Oberweis is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Ab Global Risk and Oberweis Small Cap Opportuniti in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oberweis Small Cap 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 Risk are associated (or correlated) with Oberweis Small-cap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oberweis Small Cap has no effect on the direction of Ab Global i.e., Ab Global and Oberweis Small-cap go up and down completely randomly.
Pair Corralation between Ab Global and Oberweis Small-cap
Assuming the 90 days horizon Ab Global is expected to generate 2.78 times less return on investment than Oberweis Small-cap. But when comparing it to its historical volatility, Ab Global Risk is 2.37 times less risky than Oberweis Small-cap. It trades about 0.05 of its potential returns per unit of risk. Oberweis Small Cap Opportunities is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 2,000 in Oberweis Small Cap Opportunities on August 30, 2024 and sell it today you would earn a total of 775.00 from holding Oberweis Small Cap Opportunities or generate 38.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab Global Risk vs. Oberweis Small Cap Opportuniti
Performance |
| Timeline |
| Ab Global Risk |
| Oberweis Small Cap |
Ab Global and Oberweis Small-cap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Global and Oberweis Small-cap
The main advantage of trading using opposite Ab Global and Oberweis Small-cap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Global position performs unexpectedly, Oberweis Small-cap 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 Oberweis Small-cap will offset losses from the drop in Oberweis Small-cap's long position.| Ab Global vs. All Asset Fund | Ab Global vs. HUMANA INC | Ab Global vs. Aquagold International | Ab Global vs. Barloworld Ltd ADR |
| Oberweis Small-cap vs. Ab Global Risk | Oberweis Small-cap vs. Blue Current Global | Oberweis Small-cap vs. Mirova Global Green | Oberweis Small-cap vs. Massmutual Premier Global |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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