Correlation Between Origin Emerging and Ab Select
Can any of the company-specific risk be diversified away by investing in both Origin Emerging and Ab Select 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 Origin Emerging and Ab Select into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Origin Emerging Markets and Ab Select Equity, you can compare the effects of market volatilities on Origin Emerging and Ab Select 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 Origin Emerging with a short position of Ab Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Origin Emerging and Ab Select.
Diversification Opportunities for Origin Emerging and Ab Select
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Origin and AUUIX is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Origin Emerging Markets and Ab Select Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Select Equity and Origin Emerging 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 Origin Emerging Markets are associated (or correlated) with Ab Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Select Equity has no effect on the direction of Origin Emerging i.e., Origin Emerging and Ab Select go up and down completely randomly.
Pair Corralation between Origin Emerging and Ab Select
Assuming the 90 days horizon Origin Emerging is expected to generate 1.22 times less return on investment than Ab Select. In addition to that, Origin Emerging is 1.12 times more volatile than Ab Select Equity. It trades about 0.06 of its total potential returns per unit of risk. Ab Select Equity is currently generating about 0.09 per unit of volatility. If you would invest 1,859 in Ab Select Equity on September 20, 2024 and sell it today you would earn a total of 341.00 from holding Ab Select Equity or generate 18.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Origin Emerging Markets vs. Ab Select Equity
Performance |
| Timeline |
| Origin Emerging Markets |
| Ab Select Equity |
Origin Emerging and Ab Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Origin Emerging and Ab Select
The main advantage of trading using opposite Origin Emerging and Ab Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Origin Emerging position performs unexpectedly, Ab Select 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 Select will offset losses from the drop in Ab Select's long position.| Origin Emerging vs. Rationalpier 88 Convertible | Origin Emerging vs. Gabelli Convertible And | Origin Emerging vs. Allianzgi Convertible Income | Origin Emerging vs. Putnam Convertible Incm Gwth |
| Ab Select vs. Ashmore Emerging Markets | Ab Select vs. Pnc Emerging Markets | Ab Select vs. Extended Market Index | Ab Select vs. Origin Emerging Markets |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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