Correlation Between Payden Emerging and Ab Select
Can any of the company-specific risk be diversified away by investing in both Payden 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 Payden 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 Payden Emerging Markets and Ab Select Equity, you can compare the effects of market volatilities on Payden 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 Payden Emerging with a short position of Ab Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Payden Emerging and Ab Select.
Diversification Opportunities for Payden Emerging and Ab Select
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Payden and AUUIX is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Payden 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 Payden 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 Payden 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 Payden Emerging i.e., Payden Emerging and Ab Select go up and down completely randomly.
Pair Corralation between Payden Emerging and Ab Select
Assuming the 90 days horizon Payden Emerging Markets is expected to generate 0.05 times more return on investment than Ab Select. However, Payden Emerging Markets is 18.25 times less risky than Ab Select. It trades about 0.47 of its potential returns per unit of risk. Ab Select Equity is currently generating about -0.2 per unit of risk. If you would invest 878.00 in Payden Emerging Markets on September 13, 2024 and sell it today you would earn a total of 8.00 from holding Payden Emerging Markets or generate 0.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Payden Emerging Markets vs. Ab Select Equity
Performance |
| Timeline |
| Payden Emerging Markets |
| Ab Select Equity |
Payden Emerging and Ab Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Payden Emerging and Ab Select
The main advantage of trading using opposite Payden Emerging and Ab Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Payden 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.| Payden Emerging vs. Mfs Technology Fund | Payden Emerging vs. Vanguard Information Technology | Payden Emerging vs. Columbia Global Technology | Payden Emerging vs. Firsthand Technology Opportunities |
| Ab Select vs. Siit Emerging Markets | Ab Select vs. Shelton Emerging Markets | Ab Select vs. Black Oak Emerging | Ab Select vs. Eagle Mlp Strategy |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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