Correlation Between Eic Value and Ab Select
Can any of the company-specific risk be diversified away by investing in both Eic Value and Ab Select 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 Eic Value and Ab Select into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eic Value Fund and Ab Select Equity, you can compare the effects of market volatilities on Eic Value and Ab Select 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 Eic Value with a short position of Ab Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eic Value and Ab Select.
Diversification Opportunities for Eic Value and Ab Select
Very poor diversification
The 3 months correlation between Eic and AUUYX is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Eic Value Fund and Ab Select Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Select Equity and Eic Value 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 Eic Value Fund are associated (or correlated) with Ab Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Select Equity has no effect on the direction of Eic Value i.e., Eic Value and Ab Select go up and down completely randomly.
Pair Corralation between Eic Value and Ab Select
Assuming the 90 days horizon Eic Value Fund is expected to generate 0.87 times more return on investment than Ab Select. However, Eic Value Fund is 1.15 times less risky than Ab Select. It trades about 0.02 of its potential returns per unit of risk. Ab Select Equity is currently generating about -0.04 per unit of risk. If you would invest 1,702 in Eic Value Fund on October 17, 2024 and sell it today you would earn a total of 5.00 from holding Eic Value Fund or generate 0.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eic Value Fund vs. Ab Select Equity
Performance |
| Timeline |
| Eic Value Fund |
| Ab Select Equity |
Eic Value and Ab Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eic Value and Ab Select
The main advantage of trading using opposite Eic Value and Ab Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eic Value position performs unexpectedly, Ab Select 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 Select will offset losses from the drop in Ab Select's long position.| Eic Value vs. Nasdaq 100 Profund Nasdaq 100 | Eic Value vs. Volumetric Fund Volumetric | Eic Value vs. Commodities Strategy Fund | Eic Value vs. Issachar Fund Class |
| Ab Select vs. Versatile Bond Portfolio | Ab Select vs. Ab Small Cap | Ab Select vs. Us Vector Equity | Ab Select vs. Eic Value Fund |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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