Correlation Between Jacob Funds and Ab Bond
Can any of the company-specific risk be diversified away by investing in both Jacob Funds and Ab Bond 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 Funds and Ab Bond into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jacob Funds and Ab Bond Inflation, you can compare the effects of market volatilities on Jacob Funds and Ab Bond 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 Funds with a short position of Ab Bond. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacob Funds and Ab Bond.
Diversification Opportunities for Jacob Funds and Ab Bond
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Jacob and ABNYX is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Jacob Funds and Ab Bond Inflation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Bond Inflation and Jacob Funds 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 Funds are associated (or correlated) with Ab Bond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Bond Inflation has no effect on the direction of Jacob Funds i.e., Jacob Funds and Ab Bond go up and down completely randomly.
Pair Corralation between Jacob Funds and Ab Bond
Assuming the 90 days horizon Jacob Funds is expected to under-perform the Ab Bond. In addition to that, Jacob Funds is 5.83 times more volatile than Ab Bond Inflation. It trades about -0.05 of its total potential returns per unit of risk. Ab Bond Inflation is currently generating about 0.08 per unit of volatility. If you would invest 971.00 in Ab Bond Inflation on September 12, 2024 and sell it today you would earn a total of 71.00 from holding Ab Bond Inflation or generate 7.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 37.78% |
| Values | Daily Returns |
Jacob Funds vs. Ab Bond Inflation
Performance |
| Timeline |
| Jacob Funds |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Ab Bond Inflation |
Jacob Funds and Ab Bond Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacob Funds and Ab Bond
The main advantage of trading using opposite Jacob Funds and Ab Bond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacob Funds position performs unexpectedly, Ab Bond 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 Ab Bond will offset losses from the drop in Ab Bond's long position.| Jacob Funds vs. Ab Bond Inflation | Jacob Funds vs. Atac Inflation Rotation | Jacob Funds vs. Deutsche Global Inflation | Jacob Funds vs. Aqr Managed Futures |
| Ab Bond vs. Qs Moderate Growth | Ab Bond vs. Saat Moderate Strategy | Ab Bond vs. College Retirement Equities | Ab Bond vs. Blackrock Moderate Prepared |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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