Correlation Between Huber Capital and Abbey Capital
Can any of the company-specific risk be diversified away by investing in both Huber Capital and Abbey Capital 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 Huber Capital and Abbey Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Huber Capital Equity and Abbey Capital Futures, you can compare the effects of market volatilities on Huber Capital and Abbey Capital 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 Huber Capital with a short position of Abbey Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huber Capital and Abbey Capital.
Diversification Opportunities for Huber Capital and Abbey Capital
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HUBER and Abbey is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Huber Capital Equity and Abbey Capital Futures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Abbey Capital Futures and Huber Capital 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 Huber Capital Equity are associated (or correlated) with Abbey Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Abbey Capital Futures has no effect on the direction of Huber Capital i.e., Huber Capital and Abbey Capital go up and down completely randomly.
Pair Corralation between Huber Capital and Abbey Capital
Assuming the 90 days horizon Huber Capital Equity is expected to generate 1.63 times more return on investment than Abbey Capital. However, Huber Capital is 1.63 times more volatile than Abbey Capital Futures. It trades about 0.11 of its potential returns per unit of risk. Abbey Capital Futures is currently generating about -0.01 per unit of risk. If you would invest 2,541 in Huber Capital Equity on August 31, 2024 and sell it today you would earn a total of 906.00 from holding Huber Capital Equity or generate 35.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.73% |
| Values | Daily Returns |
Huber Capital Equity vs. Abbey Capital Futures
Performance |
| Timeline |
| Huber Capital Equity |
| Abbey Capital Futures |
Huber Capital and Abbey Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huber Capital and Abbey Capital
The main advantage of trading using opposite Huber Capital and Abbey Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huber Capital position performs unexpectedly, Abbey Capital 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 Abbey Capital will offset losses from the drop in Abbey Capital's long position.| Huber Capital vs. Dodge Cox Stock | Huber Capital vs. American Mutual Fund | Huber Capital vs. American Funds American | Huber Capital vs. American Funds American |
| Abbey Capital vs. Huber Capital Equity | Abbey Capital vs. Calamos Global Equity | Abbey Capital vs. Us Strategic Equity | Abbey Capital vs. Ultra Short Fixed Income |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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