Correlation Between Ab Concentrated and Ab Growth
Can any of the company-specific risk be diversified away by investing in both Ab Concentrated and Ab Growth 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 Concentrated and Ab Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab Centrated International and Ab Growth Fund, you can compare the effects of market volatilities on Ab Concentrated and Ab Growth 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 Concentrated with a short position of Ab Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Concentrated and Ab Growth.
Diversification Opportunities for Ab Concentrated and Ab Growth
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CICGX and AGRCX is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Ab Centrated International and Ab Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Growth Fund and Ab Concentrated 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 Centrated International are associated (or correlated) with Ab Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Growth Fund has no effect on the direction of Ab Concentrated i.e., Ab Concentrated and Ab Growth go up and down completely randomly.
Pair Corralation between Ab Concentrated and Ab Growth
Assuming the 90 days horizon Ab Centrated International is expected to under-perform the Ab Growth. But the mutual fund apears to be less risky and, when comparing its historical volatility, Ab Centrated International is 1.32 times less risky than Ab Growth. The mutual fund trades about -0.01 of its potential returns per unit of risk. The Ab Growth Fund is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest 3,060 in Ab Growth Fund on September 1, 2024 and sell it today you would earn a total of 239.00 from holding Ab Growth Fund or generate 7.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Ab Centrated International vs. Ab Growth Fund
Performance |
| Timeline |
| Ab Centrated Interna |
| Ab Growth Fund |
Ab Concentrated and Ab Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Concentrated and Ab Growth
The main advantage of trading using opposite Ab Concentrated and Ab Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Concentrated position performs unexpectedly, Ab Growth 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 Growth will offset losses from the drop in Ab Growth's long position.| Ab Concentrated vs. Lord Abbett Govt | Ab Concentrated vs. Dreyfus Institutional Reserves | Ab Concentrated vs. Aim Investment Secs | Ab Concentrated vs. Prudential Government Money |
| Ab Growth vs. Ab Sustainable Global | Ab Growth vs. Ab Relative Value | Ab Growth vs. Ab Growth Fund | Ab Growth vs. Ab Small Cap |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |