Correlation Between Predex Funds and Ab Global
Can any of the company-specific risk be diversified away by investing in both Predex Funds and Ab Global 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 Predex Funds and Ab Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Predex Funds and Ab Global Bond, you can compare the effects of market volatilities on Predex Funds and Ab Global 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 Predex Funds with a short position of Ab Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Predex Funds and Ab Global.
Diversification Opportunities for Predex Funds and Ab Global
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Predex and ANAGX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Predex Funds and Ab Global Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Global Bond and Predex 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 Predex Funds are associated (or correlated) with Ab Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Global Bond has no effect on the direction of Predex Funds i.e., Predex Funds and Ab Global go up and down completely randomly.
Pair Corralation between Predex Funds and Ab Global
Assuming the 90 days horizon Predex Funds is expected to under-perform the Ab Global. In addition to that, Predex Funds is 1.35 times more volatile than Ab Global Bond. It trades about -0.09 of its total potential returns per unit of risk. Ab Global Bond is currently generating about 0.06 per unit of volatility. If you would invest 632.00 in Ab Global Bond on September 20, 2024 and sell it today you would earn a total of 57.00 from holding Ab Global Bond or generate 9.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.39% |
| Values | Daily Returns |
Predex Funds vs. Ab Global Bond
Performance |
| Timeline |
| Predex Funds |
| Ab Global Bond |
Predex Funds and Ab Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Predex Funds and Ab Global
The main advantage of trading using opposite Predex Funds and Ab Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Predex Funds position performs unexpectedly, Ab Global 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 Global will offset losses from the drop in Ab Global's long position.| Predex Funds vs. Ab Global Bond | Predex Funds vs. 361 Global Longshort | Predex Funds vs. Barings Global Floating | Predex Funds vs. Ab Global Risk |
| Ab Global vs. Allianzgi Convertible Income | Ab Global vs. Fidelity Sai Convertible | Ab Global vs. Virtus Convertible | Ab Global vs. Calamos Dynamic Convertible |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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