Correlation Between Cref Money and Ab Global
Can any of the company-specific risk be diversified away by investing in both Cref Money 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 Cref Money and Ab Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cref Money Market and Ab Global Risk, you can compare the effects of market volatilities on Cref Money 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 Cref Money with a short position of Ab Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cref Money and Ab Global.
Diversification Opportunities for Cref Money and Ab Global
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cref and CBSYX is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Cref Money Market and Ab Global Risk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Global Risk and Cref Money 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 Cref Money Market 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 Risk has no effect on the direction of Cref Money i.e., Cref Money and Ab Global go up and down completely randomly.
Pair Corralation between Cref Money and Ab Global
Assuming the 90 days trading horizon Cref Money is expected to generate 4.37 times less return on investment than Ab Global. But when comparing it to its historical volatility, Cref Money Market is 31.75 times less risky than Ab Global. It trades about 1.09 of its potential returns per unit of risk. Ab Global Risk is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 1,519 in Ab Global Risk on October 24, 2024 and sell it today you would earn a total of 22.00 from holding Ab Global Risk or generate 1.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cref Money Market vs. Ab Global Risk
Performance |
| Timeline |
| Cref Money Market |
| Ab Global Risk |
Cref Money and Ab Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cref Money and Ab Global
The main advantage of trading using opposite Cref Money and Ab Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cref Money 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.| Cref Money vs. Dreyfus Technology Growth | Cref Money vs. Technology Ultrasector Profund | Cref Money vs. Goldman Sachs Technology | Cref Money vs. Hennessy Technology Fund |
| Ab Global vs. Franklin Government Money | Ab Global vs. Transamerica Funds | Ab Global vs. Cref Money Market | Ab Global vs. Ashmore 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |