Correlation Between Accelerate Absolute and Forstrong Global
Can any of the company-specific risk be diversified away by investing in both Accelerate Absolute and Forstrong Global 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 Accelerate Absolute and Forstrong Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Accelerate Absolute Return and Forstrong Global Income, you can compare the effects of market volatilities on Accelerate Absolute and Forstrong Global 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 Accelerate Absolute with a short position of Forstrong Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Accelerate Absolute and Forstrong Global.
Diversification Opportunities for Accelerate Absolute and Forstrong Global
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Accelerate and Forstrong is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Accelerate Absolute Return and Forstrong Global Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Forstrong Global Income and Accelerate Absolute 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 Accelerate Absolute Return are associated (or correlated) with Forstrong Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Forstrong Global Income has no effect on the direction of Accelerate Absolute i.e., Accelerate Absolute and Forstrong Global go up and down completely randomly.
Pair Corralation between Accelerate Absolute and Forstrong Global
Assuming the 90 days trading horizon Accelerate Absolute Return is expected to generate 3.26 times more return on investment than Forstrong Global. However, Accelerate Absolute is 3.26 times more volatile than Forstrong Global Income. It trades about 0.1 of its potential returns per unit of risk. Forstrong Global Income is currently generating about 0.11 per unit of risk. If you would invest 2,113 in Accelerate Absolute Return on September 1, 2024 and sell it today you would earn a total of 710.00 from holding Accelerate Absolute Return or generate 33.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 88.71% |
| Values | Daily Returns |
Accelerate Absolute Return vs. Forstrong Global Income
Performance |
| Timeline |
| Accelerate Absolute |
| Forstrong Global Income |
Accelerate Absolute and Forstrong Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Accelerate Absolute and Forstrong Global
The main advantage of trading using opposite Accelerate Absolute and Forstrong Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Accelerate Absolute position performs unexpectedly, Forstrong Global 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 Forstrong Global will offset losses from the drop in Forstrong Global's long position.| Accelerate Absolute vs. Accelerate Arbitrage | Accelerate Absolute vs. Accelerate OneChoice Alternative | Accelerate Absolute vs. NBI High Yield | Accelerate Absolute vs. NBI Unconstrained Fixed |
| Forstrong Global vs. iShares SPTSX 60 | Forstrong Global vs. iShares Core SP | Forstrong Global vs. iShares Core SPTSX | Forstrong Global vs. BMO Aggregate Bond |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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