Correlation Between Crossmark Steward and Ab All
Can any of the company-specific risk be diversified away by investing in both Crossmark Steward and Ab All 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 Crossmark Steward and Ab All into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Crossmark Steward Equity and Ab All Market, you can compare the effects of market volatilities on Crossmark Steward and Ab All 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 Crossmark Steward with a short position of Ab All. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crossmark Steward and Ab All.
Diversification Opportunities for Crossmark Steward and Ab All
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Crossmark and AMTOX is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Crossmark Steward Equity and Ab All Market in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab All Market and Crossmark Steward 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 Crossmark Steward Equity are associated (or correlated) with Ab All. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab All Market has no effect on the direction of Crossmark Steward i.e., Crossmark Steward and Ab All go up and down completely randomly.
Pair Corralation between Crossmark Steward and Ab All
Assuming the 90 days horizon Crossmark Steward Equity is expected to under-perform the Ab All. But the mutual fund apears to be less risky and, when comparing its historical volatility, Crossmark Steward Equity is 1.08 times less risky than Ab All. The mutual fund trades about -0.18 of its potential returns per unit of risk. The Ab All Market is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 925.00 in Ab All Market on August 28, 2024 and sell it today you would earn a total of 5.00 from holding Ab All Market or generate 0.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Crossmark Steward Equity vs. Ab All Market
Performance |
| Timeline |
| Crossmark Steward Equity |
| Ab All Market |
Crossmark Steward and Ab All Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Crossmark Steward and Ab All
The main advantage of trading using opposite Crossmark Steward and Ab All positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crossmark Steward position performs unexpectedly, Ab All 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 All will offset losses from the drop in Ab All's long position.| Crossmark Steward vs. Steward Small Mid Cap | Crossmark Steward vs. Steward Small Mid Cap | Crossmark Steward vs. Steward Ered Call | Crossmark Steward vs. Steward Ered Call |
| Ab All vs. Short Duration Inflation | Ab All vs. Western Asset Inflation | Ab All vs. Ab Bond Inflation | Ab All vs. Vy Blackrock Inflation |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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