Correlation Between Jacob Internet and Abbey Capital
Can any of the company-specific risk be diversified away by investing in both Jacob Internet 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 Jacob Internet and Abbey Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jacob Internet Fund and Abbey Capital Futures, you can compare the effects of market volatilities on Jacob Internet 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 Jacob Internet with a short position of Abbey Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacob Internet and Abbey Capital.
Diversification Opportunities for Jacob Internet and Abbey Capital
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jacob and Abbey is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Jacob Internet Fund 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 Jacob Internet 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 Jacob Internet Fund 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 Jacob Internet i.e., Jacob Internet and Abbey Capital go up and down completely randomly.
Pair Corralation between Jacob Internet and Abbey Capital
Assuming the 90 days horizon Jacob Internet Fund is expected to generate 3.95 times more return on investment than Abbey Capital. However, Jacob Internet is 3.95 times more volatile than Abbey Capital Futures. It trades about 0.2 of its potential returns per unit of risk. Abbey Capital Futures is currently generating about 0.04 per unit of risk. If you would invest 448.00 in Jacob Internet Fund on November 2, 2024 and sell it today you would earn a total of 185.00 from holding Jacob Internet Fund or generate 41.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jacob Internet Fund vs. Abbey Capital Futures
Performance |
| Timeline |
| Jacob Internet |
| Abbey Capital Futures |
Jacob Internet and Abbey Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacob Internet and Abbey Capital
The main advantage of trading using opposite Jacob Internet and Abbey Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacob Internet 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.| Jacob Internet vs. Kinetics Internet Fund | Jacob Internet vs. Internet Ultrasector Profund | Jacob Internet vs. Firsthand Technology Opportunities | Jacob Internet vs. Berkshire Focus |
| Abbey Capital vs. Ab Bond Inflation | Abbey Capital vs. Ab Bond Inflation | Abbey Capital vs. Short Duration Inflation | Abbey Capital vs. Ab Bond Inflation |
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 Stocks Directory module to find actively traded stocks across global markets.
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