Correlation Between IQ MacKay and AB Active
Can any of the company-specific risk be diversified away by investing in both IQ MacKay and AB Active 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 IQ MacKay and AB Active into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IQ MacKay Municipal and AB Active ETFs,, you can compare the effects of market volatilities on IQ MacKay and AB Active 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 IQ MacKay with a short position of AB Active. Check out your portfolio center. Please also check ongoing floating volatility patterns of IQ MacKay and AB Active.
Diversification Opportunities for IQ MacKay and AB Active
Almost no diversification
The 3 months correlation between MMIN and TAFL is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding IQ MacKay Municipal and AB Active ETFs, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AB Active ETFs, and IQ MacKay 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 IQ MacKay Municipal are associated (or correlated) with AB Active. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AB Active ETFs, has no effect on the direction of IQ MacKay i.e., IQ MacKay and AB Active go up and down completely randomly.
Pair Corralation between IQ MacKay and AB Active
Given the investment horizon of 90 days IQ MacKay Municipal is expected to generate 1.0 times more return on investment than AB Active. However, IQ MacKay Municipal is 1.0 times less risky than AB Active. It trades about -0.03 of its potential returns per unit of risk. AB Active ETFs, is currently generating about -0.04 per unit of risk. If you would invest 2,418 in IQ MacKay Municipal on November 27, 2024 and sell it today you would lose (12.00) from holding IQ MacKay Municipal or give up 0.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
IQ MacKay Municipal vs. AB Active ETFs,
Performance |
| Timeline |
| IQ MacKay Municipal |
| AB Active ETFs, |
IQ MacKay and AB Active Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IQ MacKay and AB Active
The main advantage of trading using opposite IQ MacKay and AB Active positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IQ MacKay position performs unexpectedly, AB Active 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 Active will offset losses from the drop in AB Active's long position.| IQ MacKay vs. IQ MacKay Municipal | IQ MacKay vs. Franklin Liberty Federal | IQ MacKay vs. Columbia Multi Sector Municipal | IQ MacKay vs. Hartford Municipal Opportunities |
| AB Active vs. SSGA Active Trust | AB Active vs. SPDR Nuveen Municipal | AB Active vs. iShares Short Maturity | AB Active vs. First Trust Flexible |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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