Correlation Between Ab Global and New York
Can any of the company-specific risk be diversified away by investing in both Ab Global and New York 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 Global and New York into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab Global E and New York Municipal, you can compare the effects of market volatilities on Ab Global and New York 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 Global with a short position of New York. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Global and New York.
Diversification Opportunities for Ab Global and New York
Modest diversification
The 3 months correlation between GCECX and New is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Ab Global E and New York Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New York Municipal and Ab Global 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 Global E are associated (or correlated) with New York. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New York Municipal has no effect on the direction of Ab Global i.e., Ab Global and New York go up and down completely randomly.
Pair Corralation between Ab Global and New York
Assuming the 90 days horizon Ab Global is expected to generate 2.4 times less return on investment than New York. In addition to that, Ab Global is 3.76 times more volatile than New York Municipal. It trades about 0.02 of its total potential returns per unit of risk. New York Municipal is currently generating about 0.17 per unit of volatility. If you would invest 1,344 in New York Municipal on August 31, 2024 and sell it today you would earn a total of 9.00 from holding New York Municipal or generate 0.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab Global E vs. New York Municipal
Performance |
| Timeline |
| Ab Global E |
| New York Municipal |
Ab Global and New York Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Global and New York
The main advantage of trading using opposite Ab Global and New York positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Global position performs unexpectedly, New York 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 New York will offset losses from the drop in New York's long position.| Ab Global vs. John Hancock Government | Ab Global vs. Dws Government Money | Ab Global vs. Us Government Securities | Ab Global vs. Franklin Government Money |
| New York vs. Bbh Intermediate Municipal | New York vs. Ab Impact Municipal | New York vs. Transamerica Funds | New York vs. Franklin High Yield |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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