Correlation Between AB Active and Axonic Strategic
Can any of the company-specific risk be diversified away by investing in both AB Active and Axonic Strategic 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 Active and Axonic Strategic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AB Active ETFs, and Axonic Strategic Income, you can compare the effects of market volatilities on AB Active and Axonic Strategic 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 Active with a short position of Axonic Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of AB Active and Axonic Strategic.
Diversification Opportunities for AB Active and Axonic Strategic
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between LRGC and Axonic is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding AB Active ETFs, and Axonic Strategic Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axonic Strategic Income and AB Active 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 Active ETFs, are associated (or correlated) with Axonic Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Axonic Strategic Income has no effect on the direction of AB Active i.e., AB Active and Axonic Strategic go up and down completely randomly.
Pair Corralation between AB Active and Axonic Strategic
Given the investment horizon of 90 days AB Active ETFs, is expected to generate 5.97 times more return on investment than Axonic Strategic. However, AB Active is 5.97 times more volatile than Axonic Strategic Income. It trades about 0.11 of its potential returns per unit of risk. Axonic Strategic Income is currently generating about 0.2 per unit of risk. If you would invest 6,144 in AB Active ETFs, on August 29, 2024 and sell it today you would earn a total of 777.00 from holding AB Active ETFs, or generate 12.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AB Active ETFs, vs. Axonic Strategic Income
Performance |
| Timeline |
| AB Active ETFs, |
| Axonic Strategic Income |
AB Active and Axonic Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AB Active and Axonic Strategic
The main advantage of trading using opposite AB Active and Axonic Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AB Active position performs unexpectedly, Axonic Strategic 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 Axonic Strategic will offset losses from the drop in Axonic Strategic's long position.| AB Active vs. FT Vest Equity | AB Active vs. Northern Lights | AB Active vs. Dimensional International High | AB Active vs. First Trust Exchange Traded |
| Axonic Strategic vs. Axonic Strategic Income | Axonic Strategic vs. FT Vest Equity | Axonic Strategic vs. Zillow Group Class | Axonic Strategic vs. Northern Lights |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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