Correlation Between Midcap Growth and Ab High
Can any of the company-specific risk be diversified away by investing in both Midcap Growth and Ab High 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 Midcap Growth and Ab High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Midcap Growth Fund and Ab High Income, you can compare the effects of market volatilities on Midcap Growth and Ab High 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 Midcap Growth with a short position of Ab High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Midcap Growth and Ab High.
Diversification Opportunities for Midcap Growth and Ab High
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Midcap and AGDZX is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Midcap Growth Fund and Ab High Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab High Income and Midcap Growth 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 Midcap Growth Fund are associated (or correlated) with Ab High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab High Income has no effect on the direction of Midcap Growth i.e., Midcap Growth and Ab High go up and down completely randomly.
Pair Corralation between Midcap Growth and Ab High
Assuming the 90 days horizon Midcap Growth Fund is expected to generate 4.49 times more return on investment than Ab High. However, Midcap Growth is 4.49 times more volatile than Ab High Income. It trades about 0.06 of its potential returns per unit of risk. Ab High Income is currently generating about 0.18 per unit of risk. If you would invest 1,064 in Midcap Growth Fund on November 3, 2024 and sell it today you would earn a total of 128.00 from holding Midcap Growth Fund or generate 12.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 82.59% |
| Values | Daily Returns |
Midcap Growth Fund vs. Ab High Income
Performance |
| Timeline |
| Midcap Growth |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Strong
| Ab High Income |
Midcap Growth and Ab High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Midcap Growth and Ab High
The main advantage of trading using opposite Midcap Growth and Ab High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Midcap Growth position performs unexpectedly, Ab High 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 High will offset losses from the drop in Ab High's long position.| Midcap Growth vs. Blackrock Science Technology | Midcap Growth vs. Hennessy Technology Fund | Midcap Growth vs. Firsthand Technology Opportunities | Midcap Growth vs. Putnam Global Technology |
| Ab High vs. Vy Jpmorgan Emerging | Ab High vs. Investec Emerging Markets | Ab High vs. Franklin Emerging Market | Ab High vs. Rbc 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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |