Correlation Between AB High and Global X
Can any of the company-specific risk be diversified away by investing in both AB High and Global X 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 High and Global X into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AB High Dividend and Global X Funds, you can compare the effects of market volatilities on AB High and Global X 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 High with a short position of Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of AB High and Global X.
Diversification Opportunities for AB High and Global X
Good diversification
The 3 months correlation between HIDV and Global is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding AB High Dividend and Global X Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X Funds and AB High 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 High Dividend are associated (or correlated) with Global X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global X Funds has no effect on the direction of AB High i.e., AB High and Global X go up and down completely randomly.
Pair Corralation between AB High and Global X
Given the investment horizon of 90 days AB High Dividend is expected to generate 0.54 times more return on investment than Global X. However, AB High Dividend is 1.84 times less risky than Global X. It trades about 0.18 of its potential returns per unit of risk. Global X Funds is currently generating about 0.0 per unit of risk. If you would invest 7,365 in AB High Dividend on September 12, 2024 and sell it today you would earn a total of 108.00 from holding AB High Dividend or generate 1.47% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
AB High Dividend vs. Global X Funds
Performance |
Timeline |
AB High Dividend |
Global X Funds |
AB High and Global X Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with AB High and Global X
The main advantage of trading using opposite AB High and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AB High position performs unexpectedly, Global X 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 Global X will offset losses from the drop in Global X's long position.AB High vs. AB Low Volatility | AB High vs. AB Disruptors ETF | AB High vs. AB Ultra Short | AB High vs. Ab Tax Aware Short |
Global X vs. Global X MSCI | Global X vs. Global X Alternative | Global X vs. iShares Emerging Markets | Global X vs. Global X SuperDividend |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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