Correlation Between Global X and AB High
Can any of the company-specific risk be diversified away by investing in both Global X 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 Global X and AB High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global X Funds and AB High Dividend, you can compare the effects of market volatilities on Global X 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 Global X with a short position of AB High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global X and AB High.
Diversification Opportunities for Global X and AB High
Significant diversification
The 3 months correlation between Global and HIDV is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Global X Funds and AB High Dividend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AB High Dividend and Global X 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 Global X Funds 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 Dividend has no effect on the direction of Global X i.e., Global X and AB High go up and down completely randomly.
Pair Corralation between Global X and AB High
Considering the 90-day investment horizon Global X is expected to generate 4.31 times less return on investment than AB High. In addition to that, Global X is 1.38 times more volatile than AB High Dividend. It trades about 0.03 of its total potential returns per unit of risk. AB High Dividend is currently generating about 0.2 per unit of volatility. If you would invest 6,879 in AB High Dividend on September 4, 2024 and sell it today you would earn a total of 609.17 from holding AB High Dividend or generate 8.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global X Funds vs. AB High Dividend
Performance |
| Timeline |
| Global X Funds |
| AB High Dividend |
Global X and AB High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global X and AB High
The main advantage of trading using opposite Global X and AB High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global X 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.| Global X vs. iShares Dividend and | Global X vs. Martin Currie Sustainable | Global X vs. VictoryShares THB Mid | Global X vs. Mast Global Battery |
| AB High vs. Global X Funds | AB High vs. Dell Technologies | AB High vs. Juniper Networks | AB High vs. HUMANA INC |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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