Correlation Between Cullen Emerging and Ab Impact
Can any of the company-specific risk be diversified away by investing in both Cullen Emerging and Ab Impact 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 Cullen Emerging and Ab Impact into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cullen Emerging Markets and Ab Impact Municipal, you can compare the effects of market volatilities on Cullen Emerging and Ab Impact 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 Cullen Emerging with a short position of Ab Impact. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cullen Emerging and Ab Impact.
Diversification Opportunities for Cullen Emerging and Ab Impact
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cullen and ABIMX is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Cullen Emerging Markets and Ab Impact Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Impact Municipal and Cullen Emerging 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 Cullen Emerging Markets are associated (or correlated) with Ab Impact. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Impact Municipal has no effect on the direction of Cullen Emerging i.e., Cullen Emerging and Ab Impact go up and down completely randomly.
Pair Corralation between Cullen Emerging and Ab Impact
Assuming the 90 days horizon Cullen Emerging is expected to generate 34.64 times less return on investment than Ab Impact. In addition to that, Cullen Emerging is 2.99 times more volatile than Ab Impact Municipal. It trades about 0.0 of its total potential returns per unit of risk. Ab Impact Municipal is currently generating about 0.13 per unit of volatility. If you would invest 954.00 in Ab Impact Municipal on September 3, 2024 and sell it today you would earn a total of 46.00 from holding Ab Impact Municipal or generate 4.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cullen Emerging Markets vs. Ab Impact Municipal
Performance |
| Timeline |
| Cullen Emerging Markets |
| Ab Impact Municipal |
Cullen Emerging and Ab Impact Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cullen Emerging and Ab Impact
The main advantage of trading using opposite Cullen Emerging and Ab Impact positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cullen Emerging position performs unexpectedly, Ab Impact 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 Ab Impact will offset losses from the drop in Ab Impact's long position.| Cullen Emerging vs. Franklin Mutual Global | Cullen Emerging vs. Templeton Growth Fund | Cullen Emerging vs. Franklin Real Estate | Cullen Emerging vs. HUMANA INC |
| Ab Impact vs. HUMANA INC | Ab Impact vs. Aquagold International | Ab Impact vs. Barloworld Ltd ADR | Ab Impact vs. Morningstar Unconstrained Allocation |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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