Correlation Between Cullen International and Ab High
Can any of the company-specific risk be diversified away by investing in both Cullen International and Ab High 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 International and Ab High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cullen International High and Ab High Income, you can compare the effects of market volatilities on Cullen International and Ab High 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 International with a short position of Ab High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cullen International and Ab High.
Diversification Opportunities for Cullen International and Ab High
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cullen and AGDAX is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Cullen International High and Ab High Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab High Income and Cullen International 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 International High are associated (or correlated) with Ab High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab High Income has no effect on the direction of Cullen International i.e., Cullen International and Ab High go up and down completely randomly.
Pair Corralation between Cullen International and Ab High
If you would invest 701.00 in Ab High Income on September 12, 2024 and sell it today you would earn a total of 7.00 from holding Ab High Income or generate 1.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Cullen International High vs. Ab High Income
Performance |
| Timeline |
| Cullen International High |
| Ab High Income |
Cullen International and Ab High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cullen International and Ab High
The main advantage of trading using opposite Cullen International and Ab High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cullen International position performs unexpectedly, Ab High 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 High will offset losses from the drop in Ab High's long position.| Cullen International vs. Old Westbury Large | Cullen International vs. Fisher Large Cap | Cullen International vs. Qs Large Cap | Cullen International vs. T Rowe Price |
| Ab High vs. SCOR PK | Ab High vs. Morningstar Unconstrained Allocation | Ab High vs. Via Renewables | Ab High vs. Bondbloxx ETF Trust |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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