Correlation Between Emerald Growth and Ab Large
Can any of the company-specific risk be diversified away by investing in both Emerald Growth and Ab Large 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 Emerald Growth and Ab Large into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Emerald Growth Fund and Ab Large Cap, you can compare the effects of market volatilities on Emerald Growth and Ab Large 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 Emerald Growth with a short position of Ab Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Emerald Growth and Ab Large.
Diversification Opportunities for Emerald Growth and Ab Large
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Emerald and APGZX is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Emerald Growth Fund and Ab Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Large Cap and Emerald Growth 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 Emerald Growth Fund are associated (or correlated) with Ab Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Large Cap has no effect on the direction of Emerald Growth i.e., Emerald Growth and Ab Large go up and down completely randomly.
Pair Corralation between Emerald Growth and Ab Large
Assuming the 90 days horizon Emerald Growth Fund is expected to generate 1.45 times more return on investment than Ab Large. However, Emerald Growth is 1.45 times more volatile than Ab Large Cap. It trades about 0.1 of its potential returns per unit of risk. Ab Large Cap is currently generating about 0.12 per unit of risk. If you would invest 2,107 in Emerald Growth Fund on September 1, 2024 and sell it today you would earn a total of 862.00 from holding Emerald Growth Fund or generate 40.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Emerald Growth Fund vs. Ab Large Cap
Performance |
| Timeline |
| Emerald Growth |
| Ab Large Cap |
Emerald Growth and Ab Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Emerald Growth and Ab Large
The main advantage of trading using opposite Emerald Growth and Ab Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Emerald Growth position performs unexpectedly, Ab Large 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 Large will offset losses from the drop in Ab Large's long position.| Emerald Growth vs. Emerald Banking And | Emerald Growth vs. Emerald Growth Fund | Emerald Growth vs. Emerald Insights Fund | Emerald Growth vs. Emerald Insights Fund |
| Ab Large vs. Wells Fargo Special | Ab Large vs. Eagle Mid Cap | Ab Large vs. New World Fund | Ab Large vs. Emerald Growth 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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